A little house with a big debt
The next five years are likely to produce some dramatic changes to our levels of debt and mortgages are set to escalate to the £300,000 price range.
These prices will be over eleven times the average take home pay and may rise even further by almost 50% as homes become scarcer to buy. The result? Many people could be seeking debt advice sooner than they thought...
The National Housing Federation (NHF) is pressing the government to stand by its promise and construct three million new properties within the next thirteen years.
Whilst many feel that repossessions and inflated interest will provoke a drop in the market, the NHF feel that this is most unlikely even though the levels of debt from a mortgage are making it impossible for first time buyers to enter the property market.
The Labour government have caused house prices to billow by 156% whilst wages have crawled at a mere 35%.
If the current trend continues, houses in London will be racing toward the half a million threshold by 2012.
In Yorkshire and the North West, properties are set to soar to the £200,000 mark.
Figures show that the nation currently requires at least 210,000 homes per year but at present only 165,000 are being built. This highlights a great demand for both private and social housing, which are equally as difficult to obtain.
Many desperate families are taking the risk and pushing debt to the limits as they try to cope with mortgages they are unlikely to ever settle.
Debt Advice News posted on 15/10/2007 10:23:05
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