tag:blogger.com,1999:blog-44795077432816059962012-02-16T02:24:16.231-08:00Peter Crippshttp://www.blogger.com/profile/01334818381276364957noreply@blogger.comBlogger11100tag:blogger.com,1999:blog-4479507743281605996.post-18357533786317067952008-04-21T04:33:00.000-07:002008-04-21T05:00:41.765-07:00Britain is apparently one of the richest countries in the world and has enjoyed a decade of economic boom.<br />So why is it that, particularly in the south-east of England, most people I know are struggling to make ends meet?<br />The principal reason is that our homes cost way too much and for most of us paying off the rent or mortgage takes up the lion's share of our wages.<br />It's virtually impossible for first-time buyers to get onto the property ladder at the moment unless they are able to conjure up a whopping deposit from somewhere.<br />The cost of homes - which average more than £200,000 - is unrealistic bearing in mind that the average wage is about £22,000 per annum.<br />How has it managed to escalate to this level?<br />The English are obsessed with owning their own homes, preferably so they can do them up and add value to them at the same time.<br />Secondly, mortgage providers which have been prepared to offer us loans of up to six times our salary have led to many us being mortgaged up to the eyeballs.<br />But there's another factor which has pushed prices up way further - people who own second homes.<br />I'm not just talking about the filthy rich who have holiday abodes in places like Cornwall or Wales.<br />There has been a money trend of people, some of whom would not be considered wealthy, purchasing buy-to-let properties.<br />They have been encouraged by the Government which has provided investors with tax breaks and mortgage companies which have offered them special deals.<br />This has helped property prices to rise beyond the grasp of the average man or woman.<br />Perhaps it's about time that the Government penalised those who are rich enough to buy a second home by giving them a higher rate of tax instead of encouraging them to treat homes as investment opportunities.<br />Sadly it looks as if we are now in for a crash in house prices. But at least a 'correction' in the market might make homes affordable once again for ordinary people.<div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/4479507743281605996-1835753378631706795?l=planetpeter.blogspot.com' alt='' /></div>Peter Crippshttp://www.blogger.com/profile/01334818381276364957noreply@blogger.com0