successive governments5 Jun 2018 15:55
The intergenerational debate is not a simple concept to rely on (I am neither a BB or a Mill) but I remember all to well the mortgage interest rates hitting 15% in the early nineties and the hardship that brought to me and others as first time buyers. That said, at the time, the housing market was just that, a market without this level of supply and demand manipulation although many fell foul to the interest rate hikes: fell into negative equity and repossessions.
Although painful, for many, a rebalancing of the market was necessary in simple economic terms to find a new equilibrium for the essential fist time buyer....but that didn't happen but it needs to.
Since then successive UK government's have interfered in the markets. Buy to let, bank of mum and dad, and lifetime isa's all serve to prop up the market when in fact it needs to undergo a big correction to allow young people to buy a home at an affordable price. The problem now is that no government wants to face the reality that real hardship has to happen for some house owners to solve the problem: too many older voters (majority in the UK) �
I have total sympathy with the young people of today but it is not as easy as saying it is an intergenerational problem to my mind it is a wider social problem and the net affect of government interference over the last 20 years in order the retain respective votes.... just my opinion of course but like Chesh I had to work bloody hard to pay my off and didn't have a holiday for eight years as a result... regards all
regards all