Housing market DOOM ahead
It might not seem that way, but we are, apparently, living in a ‘benign period' - when it comes to interest rates, anyway. But the Council of Mortgage Lenders has hinted that this nirvana of low interest rates could soon come to an end - leaving homeowners penniless and living on the streets.
The CML are predicting a rise in home repossessions as soon as the Bank of England raise the base rate, which has been sitting way down at 0.5% since 2009. They said that although a large amount of families could cope with a ‘slow and steady’ rate rise, families who are already under financial pressure could be badly affected. And, added Bob Parnell from the CML: ‘We remain aware that a sizeable minority of households continue to be subject to financial pressures.’
So that’s something to look forward to, isn’t it? Wait! There’s more. Another report from the National Housing Federation says that the British housing market is ‘dysfunctional’ and that prices will rise by 44% over the next seven years. Which means the younger generation will be priced out of the market FOR THE REST OF THEIR LIVES.
Basically then, the houses will be solely occupied by Russian oligarchs and their trophy wives, or rich Chinese businessmen looking for a UK crash pad, and the entire population will be living underneath the arches frying rats on a hot oil drum.
Ain’t it grand?