Effortless Switch Of The Week

We've had quite a few episodes of "We own land! Give us money!" (often disguised as "They own land! Give them money!" when the banks are doing it) in the past few weeks, the government want to 'help' first time buyers onto the ladder and want to 'help' property developers finish their 'stalled projects'.

The government proposed scaling back the 'help' it gives 'hard pressed home owners who have fallen on hard times' (i.e. unemployed people who tried to speculate on rising house prices) but fakecharity Shelter sprang to the defence of such people, i.e. what we have is an organisation ostensibly campaigning against homelessness but in fact trying to prop up the whole system which causes homelessness in the first place.

The Powers That Be have now identified yet another group of land 'owners' who need 'help', the so-called Second Steppers. Here's the PA press release (Spotter's Badge: Anon in the comments to an earlier post):

Homeowners hoping to take their place on the second step of the property ladder face a "very tough challenge" as home affordability for so-called second-steppers is at its least favourable level for over 25 years. With recent falls in house prices affecting the equity in their homes, Lloyds TSB estimates that this year will also see the lowest annual number of house moves since 1974, with a 9% fall on 2010.

It warned the issue of struggling second-steppers was significant in terms of trying to get the housing market moving again. As buyers often stay in their first home for a period of about four years, many potential second-steppers bought their first home at the peak of the market in 2007, paying up to 23% more than first-time buyers now. The second stepper affordability measure in the UK now stands at the highest level since records began in 1987 - 5.2 times gross annual average earnings. This has nearly doubled from three in 2001 and is significantly above the long-run average of 3.3, based on the average price of a second stepper home.

This leaves a whole host of homeowners in a negative equity position of almost £10,000, therefore making attempts to climb the ladder much more difficult... The findings of the review are more positive for first-time buyers as their affordability ratio (4.1) is now more favourable than the potential second-steppers. This marks a vast change from the situation at the peak of the housing market in 2007 when home affordability for second steppers (4.1) was much more favourable than for first-time buyers (5.7).

Suren Thiru, housing economist at Lloyds, said: "The issue of second stepper affordability is a key one in trying get the housing market moving again with the current difficulties in this segment of the market restricting the supply of starter properties for first time buyers as well as preventing many of those who need to move from doing so."

So they're not actually asking for money yet, but The Powers That Be are trying to soften up public opinion a bit, so that hopefully, one day, Second Steppers will be on the Protected Species list, somewhere behind the Poor Widow In A Mansion, The People Who Don't Want To Lose The Family Home When They Are Taken Into Care, Hard Pressed Homeowners Who Have Fallen On Hard Times, First Time Buyers etc etc.