The Collapse Of The Pound And The Effect On The El

[waiheke1 4,295]

Can't disagree with that. But it is harder than ever to get on the property ladder - not saying it was ever easy.

But scb is right in pointing out that it doesn't always make sense to get on the property ladder. Right now is probably a good time to hold off in the hope that Brexit brings down prices, forces mortgagee sales etc. and allows a first home buyer with cash good buying.

[g13webb 4,254]

Can't disagree with that. But it is harder than ever to get on the property ladder - not saying it was ever easy.

But scb is right in pointing out that it doesn't always make sense to get on the property ladder. Right now is probably a good time to hold off in the hope that Brexit brings down prices, forces mortgagee sales etc. and allows a first home buyer with cash good buying.

 

I have to disagree with you and say it is always benefit to get on the property ladder. Probably sight term renting might have a few advantages but in reality buying far outweighs everytime. Today, there are far more places to rent, and that is because the people buying those houses are making a mint out of the people who rent them. I appreciate the costs of buying property has increased to a level when first time buyers are finding it difficult , but as you say it has never been easy.

Back in '75 my mortgage was £50 per month, compared to the £15 per month my parents were paying for a 3 bedroomed council house. so you see it was hard but we managed. We used 5 wks wages to finance that bill alone, so in that respect little has changed.

 

Many times you question the sensibility of buying your own house, but in the end it all becomes clear and worth while..... My only regret is that I didn't buy more.....

[waiheke1 4,295]

Can I just check what u mean by 5 weeks wages to finance your monthly mortgage? So your weekly gross wage was 10 quid? And you and your partner spent 5 weeks gross wages to pay the mortgage. 10 quid seems awfully low as a weekly wage in the 70s?

[dj350z 2,266]

Can I just check what u mean by 5 weeks wages to finance your monthly mortgage? So your weekly gross wage was 10 quid? And you and your partner spent 5 weeks gross wages to pay the mortgage. 10 quid seems awfully low as a weekly wage in the 70s?

 

I was on £7 a week in the 70's as an apprentice so it does sound quite low!

[waiheke1 4,295]

From what I can see, average weekly wage in 1970 was about 30 quid. Average house price was 3 times that. Don't know about uk, but in Auckland average house boric is now over 12 times the average full time salary. Even with low interest rates, that's seriously less affordable@

[houdi 535]

I believe at this time it is impossible to defend brexit.

All this would be fine if you actually knew what you were on about. The thing is we have been down this road twice in the last 20 years and both times economic 'experts' like you have been proven totally wrong.

Back in the 1990's we were told by economic half wits like you that joining the ERM was vital to the UK economy, what actually happened interest rates soared to 15% as we shadowed the mark, house repossessions soared as people struggled to pay their mortgages. We then left the ERM interests fell to a more sustainable level, the pound devalued, and guess what ,the economy boomed and we went on one of the most sustained growth periods in the nations history.

10 years later the same so called experts , the CBI et al all told we needed to join the EURO, that if we didn't, jobs and investments would dry up, foreign investment would head to mainland europe, and yet again the exact opposite happened.The so called experts were again proven to be totally wrong.

So you will forgive us if a lot of people take no notice of your hubris,and bold claims.

As for food prices, really ???in an EU that has the Common Agricultural Policy that adds around 20% to food prices, and which even Euro fanatics admits needs reform,hey we have only been waiting about 20 years for that to happen. Once we leave the customs union we can source food from other countries without the trade tariffs that the EU currently imposes on them, which should lead to lower food prices.

Your side were wrong on the ERM, you were proven wrong on the Euro, and you will be proved wrong long term on Brexit, Maybe should worry more about the Italian banking crisis, the sovereign debt crisis sweeping Southern Europe, the ongoing migrant crisis now threatening to destroy your beloved EU.

[dj350z 2,266]

From BBC news website:

 

The former boss of Sainsbury's, Justin King, has given an indication of the problem, saying that shoppers should expect higher prices because supermarkets will not be able to absorb the extra cost of imported goods.

According to media reports of a conference speech by Mr King, he said: "Retailers' margins are already squeezed. So there is no room to absorb input price pressures and costs will need to be passed on.

"But no one wants to be the first to break cover. No business wants to be the first to blame Brexit for a rise in prices. But once someone does, there will be a flood of companies, because they will all be suffering."

Leading retail analyst Richard Hyman told the BBC: "This shines a light on something that is going to be happening all the time.

"The problem is that retailers can't just put up their prices and get away with it.

"Oversupply of retailers means that for the past 24 months there has been food price deflation. What makes them think they can just push prices higher?" he added.

[tellboy 3,672]

I'm glad i bought my house but each to their own.It is much tougher now to afford a mortgage especially for first timers.For instance i was earning £210 a week in 1994 and now £520 a week.In 1994 my house cost £35000 and now it is £140000.So my wages have gone up about 2.5 times but the house about 4 times.So for people now that means alot less money in their pockets.

[g13webb 4,254]

Can I just check what u mean by 5 weeks wages to finance your monthly mortgage? So your weekly gross wage was 10 quid? And you and your partner spent 5 weeks gross wages to pay the mortgage. 10 quid seems awfully low as a weekly wage in the 70s?

 

Sorry to mis-lead you, I unfortunately missed out the word 'wife'. Our mortgage was equal to 5wks of the wife's earnings.. We had to live on what remained from both our earnings... But as you can imagine it was real hard times.....

[The Voice Of Reason 2,124]

I too purchased my first house in 1985 aged 21. So what. Who cares!

 

However, unlike some, I can't just sit here; smug look on face; saying "well I'm alrite Jack so sod the rest of ya".

 

Indeed, that approach is far too prevalent within today's society. This blinkered view of "well I managed it, so why can't you". It's oh so painfully typical of this self-righteous, patronising outlook upon others.

 

The FACT IS there are now hundreds of thousands of people on ZERO HOUR CONTRACTS. Many of these are younger people within our society who haven't got a hope in hell of becoming first-time buyers; irrespective of their aspirations to better themselves.

 

Tell me of ANYONE that will provide a mortgage given these circumstances.

 

The banks - who we the tax-payers have bailed out? Not a chance in hell.

 

With the construction of council homes at an all-time low since records began, their only choice is the private rented sector. An unregulated conglomorate of sharks and con-merchants; HUNDREDS OF WHOM ARE MP'S! To this end do you honestly foresee regulatory standards; rent-capping, etc. EVER going through Parliament?

 

I'm truly astonished by many people today within the UK. This 'don't care about others' mentality. The 'I'm alright Jack/sod foreigners' hyperbole spouted daily (many of whom are simply trying to make a better life for themselves and their families.....as WE would all do if in a similar position). This 'sod fellow human-beings' approach; encouraged by tories and UKIP.

 

What ever happened to humanity?

 

I truly find it physically sickening.

Edited October 13, 2016 by The Voice Of Reason

[SCB 15]

Great all those people who bought a house in 1980s Britain have made money. Brilliant. Now ask those who bought a house in 2000's Ireland, Spain or the USA how that worked for them! Or even Italy. 80% of homes in the UK these days are bought by investors and 85% are bought with interest only mortgages. Now the tax breaks have been removed for BTL investors and they start to lose money and have to sell up who do you think is going to buy from them? Owner occupiers cannot afford to buy. House prices are going to tumble in the next 18 months, regardless of brexit. When that happens I'll be a cash buyer and will be laughing. Or alternatively I've massively mis-judged things in terms of house prices and they'll continue to go up but unless they go up 30% in the next 18 months I'm still better off having not bought a house because I've invested that money elsewhere and done better for it.

[iris123 21,084]

So every country outside the EU is on the slippery slope to collapse? Sorry to go off topic but we prospered before the EU and we will prosper after it

 

 

Sorry to burst your bubble but the UK was a basket case before they joined the EU.Pretty much begged to get in and were turned down by Charles de Gaulle on a couple of ocassions i think

 

 

 

 

Don't agree, look at this hostoric GDP graph.. we were growing even back then. Infact, Thatcher actually made it worse! Hopefully the link works let me know if it doesn't

 

http://cdn.tradingeconomics.com/charts/united-kingdom-gdp.png?s=wgdpuk&v=201610011542o&d1=19160101&d2=20161231

 

 

Where on earth did you dig up this nonsensical quote? Absolute rubbish but obviously nothing personal.

 

 

 

 

This is the history of our economy leading up to us pretty much begging to get in and yes de Gaulle did veto our membership twice.Was only when Pompidou came along was he more friendly towards us

 

 

As these factors coalesced during the 1960s, the slogan used by Prime Minister Harold Macmillan "(most of) our people have never had it so good" seemed increasingly hollow. The Conservative Government presided over a ‘stop-go’ economy as it tried to prevent inflation spiralling out of control without snuffing out economic growth. Growth continued to struggle, at about only half the rate of that of Germany or France at the same time. However, industry had remained strong in nearly 20 years following the end of the war, and extensive housebuilding and construction of new commercial developments and public buildings also helped unemployment stay low throughout this time.

The Labour Party under Harold Wilson from 1964–1970 was unable to provide a solution either, and eventually was forced to devalue the Pound again in 1967. Economist Nicholas Crafts attributes Britain's relatively low growth in this period to a combination of a lack of competition in some sectors of the economy, especially in the nationalised industries; poor industrial relations and insufficient vocational training. He writes that this was a period of government failure caused by poor understanding of economic theory, short-termism and a failure to confront interest groups.^[2]

Both political parties had come to the conclusion that Britain needed to enter the European Economic Community (EEC) in order to revive its economy. This decision came after establishing a European Free Trade Association (EFTA) with other, non EEC countries since this provided little economic stimulus to Britain’s economy. Levels of trade with the Commonwealth halved in the period 1945–1965 to around 25% while trade with the EEC had doubled during the same period. Charles de Gaullevetoed a British attempt at membership in 1963 and again in 1967.

The general election in June 1970 saw the Conservatives, now led by Edward Heath, achieve a surprise return to government after the opinion polls had suggested a third successive Labour victory. Unemployment was still low by this stage, standing at 3% nationally.

However, with the decline of Britain’s economy during the 1960s, the trade unions began to strike, leading to a complete breakdown with both the Labour Government of Harold Wilson and later with the Conservative Government of Edward Heath (1970–1974). In the early 1970s, the British economy suffered more as strike action by trade unions, plus the effects of the 1973 oil crisis, led to a three-day week in 1973-74. However, despite a brief period of calm negotiated by the recently re-elected Labour Government of 1974 known as the Social Contract, a breakdown with the unions occurred again in 1978, leading to the Winter of Discontent, and eventually leading to the end of the Labour Government, then being led by James Callaghan, who had succeeded Wilson in 1976. The extreme industrial strife along with rising inflation and unemployment led Britain to be nicknamed as the "sick man of Europe"..

Edited October 13, 2016 by iris123

[E I Addio 15,856]

Euro fanatics admits needs reform,hey we have only been waiting about 20 years for that to happen. EU.

That really seems to be the nub of the issue in many peoples minds. So much of it is in desperate need of reform but the vested interests and those on the gravy train have set their faces like flint against any sort of change that encroaches on their personal status and influence.

 

They are so dumb and out of touch that they could not they could not see that even a few minor concessions woukd have almost certainly been enough to swing the referendum in favour of the remainers.

 

Instead of blaming the fishwives of Hartlepool the anger of the remainers should be aimed at the elite of Brussels and Strasbourg

. This 'sod fellow human-beings' approach; encouraged by tories and UKIP.

What ever happened to humanity?

Would that include the Tories led by Blair and Brown ? You remember, the ones who had hedge fund managers paying less tax than their office cleaners. The onee that were quite happy to send expendable soldiers to their deaths in Iraq for want of spending enough money on protective equipment. The ones that tried to cover holes in the economy by selling off the gold at rock bottom prices. The one that promised British jobs for British workers and didn't deliver.

 

Funny how people's memories play about when politics are involved.

 

Whatever happened to humanity? Try looking on the doormat of the House of Commons, the European Parliament, or United Nations. You might find someone wiping their feet on it

[orion 7,627]

Anyone seen this ...I think this sum up a lot of the people who voted out ...http://www.lbc.co.uk/radio/presenters/james-obrien/which-eu-law-are-you-looking-forward-to-losing/

Edited October 14, 2016 by orion

[Grachan 7,364]

Anyone seen this ...I think this sum up a lot of the people who voted out ...http://www.lbc.co.uk/radio/presenters/james-obrien/which-eu-law-are-you-looking-forward-to-losing/

 

Very entertaining, but infuriating to listen to and hear what level of undertanding people who voted to leave really have and how they have affected this country's future.

Then again, I voted to remain but don't have a full understanding of all issues either, because we were never properly informed throughout it all.