*Falling house prices *Negative equity *Tougher criteria for mortgage applications *Increased demand for rental properties and higher rental prices *Increased estate agent fees *Some very dodgy letting agents
For me, this situation is not great. In fact, searching for a flat in London has been a living nightmare!
Having found ourselves in some pretty sticky situations, we have finally found somewhere suitable but it was definately not fun and now to afford the rent, my flatmates and I will be living on shipwrecked rations for the next year...
But what about you? How have these changes been affecting your housing situation? Whether they have had a negative or positive effect, share your stories here....
Can someone explain why negative equity is such a big deal? You buy a house, the cost to you is set in stone. Fluctuations in the price of your house should only matter if you're going to sell. You buy a house for £200k, the value increases to £250k you still pay £200k. It drops to £150k, you still pay £200k. Or is that completely wrong?
Isn't it like when a car depreciates as soon as you buy it? Why isn't that called negative equity? Not everyone can pay for a car outright so take out a loan/put it on credit. Same thing as getting a mortgage.
We have a serious and chronic housing problem with a shortage of private rented houses, property speculators with absolute power to evict under the 1988 housing act and European migrant workers pouring into England at a rate never known in history. To see the real stories of horror of elderly veterans dragged from their sick beds by bailiffs and the cops as property speculators realise they can make more from 30 migrant workers at £70 a week rent each than elderly pensioners only able to pay £360 a month through the begging bowl housing benefit.
Soldier, Sailor, Airman, Royal Marines Commando Association
Housing horror stories.
Posted - 06/08/2008 : 14:47:39
