House Prices

At this precise moment in time, there are around 26 million homes in the United Kingdom, with prices that are so expensive that many first time buyers cannot afford anything more than a small studio flat - provided that they can provide the money (up to £40,000 for an apartment around London - i.e. up to 20%) which acts as a guarantee for the mortgage lenders.

The problem in England is that for several decades now houses have been seen as an increasingly attractive way of earning some quick money. It is not uncommon for people to make tens of thousands in a decade for simply sitting quiet with their properties, sometimes renting them out, but generally becoming richer in the long run than before.

However, the recession has seen some people becoming worried that their homes will not gain in value.

This has to be the most ridiculous concern ever. Sure - if the home is actually losing (a lot of) money then I could have some sympathy. Yet many people believed that they were simply entering into a business venture that would ensure they were well off in their retirement, or act as a way to generate capital which they otherwise could not earn.

Reality checks set in for people as they now realise than the property market is less buoyant than it was five years ago...

As Grant Shapps, the new coalition's Housing Minister stated recently, homes cannot be treated in the same manner as they were since the 1970's. Homes are meant to provide a roof over your head, not endear you to your bank manager. There are some people out there who just want to have a place to live, yet the artificially high house prices (thanks to the Conservative party when they were last in power with their familiar "greed is good" approach) have destroyed most average people's chance of getting anything like this. Thanks a lot parents and my previous generation. That's another fine mess you got me into!