Shelter has launched a new three-minute video about the housing market, released to show their backing for the FSA’s Mortgage Market Review which advocates lending practices that supporters welcome as ‘safe’ and its critics slate as ‘non-lending’.
The video is a bit of a history lesson, but is a clear and well-done animation which paints a picture of how irresponsible lending contributed to a house price bubble, which in turn priced out first-time buyers and led to today’s stagnant housing market.
Shelter says the aim is to show frustrated would-be home owners how we have arrived at a point where the average house price in England is close to seven times average incomes and why half of renters believe they will never be able to afford to buy a home in their local area.
Campbell Robb, Shelter’s chief executive, said: “At Shelter we know all too well the damage that irresponsible lending can cause, from the pain of repossession to the frustration of those who have been frozen out of home ownership due to inflated prices.
“Many aspiring home buyers might feel that more available credit is the answer to finally owning their own home but don’t fully realise the unsustainable debt they could be taking on. It can lead to disastrous consequences for individual households and for the economy as a whole.
“Reforms are essential to ensure we have mortgage regulation that produces long-term stability both for the housing market and for the millions of families who desperately need help.”
https://www.youtube.com/watch?v=9rfmKYSgsH8&feature=youtu.be
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Comments
So someone not wanting to pay stupid amounts of money to put a bog-standard roof over their house is unpatriotic.
I knew it was only a matter of time before such a comment was made on this site.
Knew you would be anti British Rant.
The Empire was built on Brits who had resources shafting people in other countries who didn't. The same's still happening, just within this country's borders rather than around the globe.
or just rent like a fool, or get shelter to house you. Come on guys aspire to be better, this is not how we built an empire
Good simple video.
Do people still believe that prices won't continue falling?
I hope this video gets the coverage it deserves.
Paragraphs two and three of this article are absolutely spot on too.
As usual Shelter, like the FSA, takes no account of the 1 in 10 people who are self-employed and are already largely frozen out of the mortgage market because they have non-standard PAYE salaries. In my own situation, because my income is composed of a mixture of salary, private company dividends and rental income, I find it impossible to obtain a mortgage. The removal of interest-only mortgages, which allow business people to repay chunks of the loan at a time of their own choosing, is just another disaster for the self-employed.