We read that economists warn that 33,000 could be made homeless by the housing repossessions by mortgage lenders.

But what about all those that are already homeless becuase they cannot afford the current high prices of properties ?

Will it the situation not just balance itself out as those who previously could not aford a home, such as myself, manage to jump on the bottom rung of the 'housing ladder' ?

Source: http://www.metro.co.uk/money/article.html?in_article_id=144855&in_page_id=36

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This all began when homes became investment commodities, instead of a dwelling & somewhere to live.

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since the 1980's people have been convinced that it is their right to own their own home

before this many people were quite happy to rent but we have been brainwashed into tbinking that renting is 'dead money'

it is sad but true that many people have been encouraged to live beyond their means and have taken out 100% mortgages with no savings as a safety net

a 100% mortgage means that the borrower is taking on a debt without a deposit as a buffer - quite a risky position to be in

the price of houses isn't what is making people homeless .... it is people taking on a debt they cannot afford .....

that coupled with the 'right to buy' sell off of council houses .....

sometimes our expectations are not realistic .... sorry

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One door closes and another one openes. Property prices are too high but I feel sorry for the ones lumbered with high mortgages and also for the ones like you who can't afford these sky high prices.

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Yes I think the market will balance itself and house prices will decrease and will become affordable to people who hitherto have been unable to get a foot on the ladder.
There are going to be winners and losers in this levelling out of the market.

I wonder what would happen if people who have mortgages and cannot afford them because the banks and other financial institutions encouraged irresponsible lending dug their heels in and just stayed in the properties and refused to budge and then resume payments when they could afford to. They find themselves in a very difficult position (not really of their making) - if they have children would it make sense to make them homeless. Perhaps those 33,000 ought to challenge the financial institutions and see what happens.
There has been gross irresponsible lending as well as borrowing.

Waves : I agree totally with yr view.
Homes (not houses for investment purposes).

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What is lacking in the UK is a properly controlled house and flat renting market.
The renting market is very little controlled by law. -A landlord can evict a tenant by simply giving him a week's notice. Other European countries look at the renting market as the main source of habitation and buying is the alternative. Not so in the UK. That, in my view, is the problem.
It is absolutely crazy that a couple save the required 10% deposit, then pay legal fees and surveying fees amounting easily to 2 or 3 thousand pounds.... then after 5 years.... repossession. That couple, on repossession, could have lost a grand total of £80,000 including 5 years of mortgage monthly repayments and then they find themselves homeless, bad creedit atached to theri name with no further possiblity to buy ever again. -------CRAZY and wrong !!

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the 33,000 is A low est. as I see it. over inflated prices
of homes is what killed the California economy the first time and it is again the bullet that has put it down Again...
but this time is is taking the rest of the world with it...........
We are in for 1` UGLY time for the poor like we are my friend. hang on and PRAY for shelter from this storm...

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they will have to rent just like all people in the past who were repossessed.

Some people have only themselves to blame they wanted what they could not afford and now its payback time...so many lied about what they earned..so many used their houses as an ATM....some could have downsized when they began to have difficulty but they were in denial and the houses will be seized....

I bought a property a lot cheaper than I could afford bcoz I looked at 2 scenarios for example.....what if the rates went to 7%.....or if I became unemployed or ill how long could I pay the mortgage from savings while trying to sell etc....

GREED and INSTANT GRATIFICATION is a serious problem in this country end of.... we will all learn lessons from this UNTIL THE NEXT TIME......

Good luck first time buyers get your hands on some repossessions.............

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There is still a problem for first time buyers trying to get on the housing ladder. Although property prices may fall, the cost of a mortgage is, if anything, rising. The banks are not passing on reduced interest rates to customers, and are also demanding larger deposits.

By the time you have saved enough for the deposit, the price of houses may well have increased.

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They new the risks when they took out their mortgages!. most could not afford any increase in interest payment's but still went ahead.

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