Statistics paint grim picture of British life

Figures recently published by the UK’s official statasticians show that many people in Britain are having a tough time making ends meet.

Increasingly, bankruptcy is being used as a way to escape crippling debts. In fact, bankruptcy has reached a record high.

Other stats showed that one-third of families live in “non-decent homes”. This means they fall short of the statutory minimum requirements for housing. Around 10% of families live in homes in a serious state of disrepair, while the same amount have to cope with “excessive cold” – simply because their homes lack proper heating or insulation.

Also due to rising debt, the number of adults living in the family home is increasing. The statistics revealed that a third of men and a fifth of women aged between 20 and 34 lived at home with their parents.

Most likely this is because they simply cannot save for a deposit to buy a home.

With the days of 100% mortgages long gone, this figure is sure to rise.

Signs of confidence in the housing market

With many economist saying that the worst job losses are over, there was more good news for the economy, with estate agents predicting a good Easter period.

Estate agents generally see Easter as the start of the house hunting season in the UK. Although the downturn isn’t over, many property professionals are more confident a recovery is approaching.

As house prices slide and with interest rates at a record low, more people will see this as the right time to take that first step on the property ladder.

Peter Bolton King, chief executive of the National Association of Estate Agents, summed things up by saying: “Generally, our members are a little bit more optimistic than during the fourth quarter of last year. About 80% are more upbeat, although that does not mean things are wonderful.”

However, it isn’t so good for home owners who see the equity in their home as a way to fund retirement.

Price fall in all housing

A survey of the housing market has shown that house prices have fallen by 15% in the last year.

That is a huge fall. That is more alarming is that all types of housing has seen a dramatic fall in prices. The survey by the Land Registry showed that flats have seen a price fall of 17.3%, while the price of a detached homehas fallen by around 12%.

This has also affected house sales, with some estate agents completing only two sales a month.

I think the best hope for the housing market is increased lending by banks, which will hopefully be stimulated by the Bank of England’s cash injection.

Is negative equity really a bad thing?

With up to 4 million people in Britain facing negative equity, there are plenty of doom laden stories about the state of the housing market.

However, if people learn to see their home as a place to live rather than an investment, a temporary fall in value isn’t too bad.

Of course, if you were encouraged to buy your house during the boom, in the hopes of making a quick profit as prices continued to rise, then this must be terrible news.

Whether you see negative equity as a temporary problem, or the beginning of a slippery slope, the research by GfkNOP doesn’t make for pleasant reading.

Some good financial news

In the current financial climate, good news is few and far between. So it is encouraging that the Halifax are saying house prices could rise this month.

However, it’s not all good news. The bank said that the figures for January may not be the end of the downturn in the housing market.

I think that people need to change their attitudes towards housing if they are going to end the constant worry about house prices.

Houses need to be seen as a place to live, rather than some form of asset or investment. Unless you are planning on selling your home in the very near future, the temporary fluctuations in the housing market don’t particularly matter.