High house prices affecting society

smeagold

The massive financial deficit is forcing young people to delay key life stages, according to First Direct, the bank which commissioned the report.
‘Three in ten of their parents were married and on the property ladder by the age of 25,’ it said. ‘But money worries mean the average young Briton today does not expect to pass these milestones until their mid-30s.’

Three in four of the 3,000 polled for the study agreed with the contention that today’s young people ‘are the most financially pressured in history’.

One in five has postponed, or feels they should postpone, marriage plans. One in four is delaying having children

Nearly a third are even considering not having children at all ‘because they cannot afford to do so’, according to First Direct which calls them ‘Generation Gap’.

By contrast the report suggested that most of their own parents had delayed no major life stages.

One of the biggest problems for twenty-somethings is the enormous cost of buying a property.

A couple who married in 1985 could have picked up a home for just £35,000 – the average price at the time and four times the average salary.

A child born to the couple two years later would now be 24 and need to find £163,000 for a similar house – eight times the average salary.

http://www.dailymail.co.uk/news/article-1358161/The-rising-cost-living-revealed-How-young-need-twice-salary-match-parents-lifestyle.html#ixzz1Ea5SzuHZ

Artificially high house prices have an impact on other areas of society, especially the young as we can see above. Of course this situation will not continue as its unsustainable. A market cannot remain high without buyers regardless of what sellers think their house is worth. It's only worth what someone can afford to pay for it. recent reports showed 80% of young people needed parental assistance to buy a house. We now have a whole generation priced out. how is that good?

Loughton_Monkey

Presumably, the survey didn't bring up other differences, such as:

1. In our day, when we wanted to buy a house, we would make do with buying whatever we could get for the money. These days, the kids want their 'dream' home to be large enough to live in for 30 years and in a 'good' area.

2. In our day, parents tended not to be rich. These days, it is our generation who saved/invested and created the 'Bank of Mum & Dad' - unavailable in my day.

ukcarper

I suppose it has nothing to do with more people going to university and entering the work place at 22 instead of 16 by the time I was 25 five I was earning the maximum you could earn in my particular type of job.

I’d also like to see where they got their figures from because I believe the average wage now is £26,510 which is nearer 6x than 8x.

http://www.thisismoney.co.uk/mortgages-and-homes/house-prices/article.html?in_article_id=507628&in_page_id=57

seems to show it's lower

somethingcorporate

Also nothing about the previous generation simply going without if they could not afford it, not nowadays! bung it on the plastic and worry about it tomorrow (that mythical day that never comes!).

smeagold

ukcarper wrote: »

I suppose it has nothing to do with more people going to university and entering the work place at 22 instead of 16 by the time I was 25 five I was earning the maximum you could earn in my particular type of job.

I’d also like to see where they got their figures from because I believe the average wage now is £26,510 which is nearer 6x than 8x.

Nowadays the young need a first class degree to stand any chance of a decent job unless they want to spend their days stacking shelves in a supermarket. Kind of shows just how bad their situation is.

ukcarper

smeagold wrote: »

Nowadays the young need a first class degree to stand any chance of a decent job unless they want to spend their days stacking shelves in a supermarket. Kind of shows just how bad their situation is.

I agree the situation is bad but it’s more about that than house prices.

Perhaps if people stopped moaning about house prices and tried to address the real issues things might improve.

smeagold

ukcarper wrote: »

I agree the situation is bad but it’s more about that than house prices.

Perhaps if people stopped moaning about house prices and tried to address the real issues things might improve.

The real issue is is that house prices are too high.

ukcarper

smeagold wrote: »

The real issue is is that house prices are too high.

So that's a bigger issue than young people having to take part time jobs is supermarkets because there is nothing else.

smeagold

ukcarper wrote: »

So that's a bigger issue than young people having to take part time jobs is supermarkets because there is nothing else.

If you could buy a house on a shelf stackers wage wheres the prob?

FTBFun

smeagold wrote: »

If you could buy a house on a shelf stackers wage wheres the prob?

Has this ever been possible?

flashnazia

One in five has postponed, or feels they should postpone, marriage plans. One in four is delaying having children

One of the real tragedies; professional couples putting off children or re-thinking the amount they have. On the other hand the non-workers....