We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

Debate House Prices


In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non MoneySaving matters are no longer permitted. This includes wider debates about general house prices, the economy and politics. As a result, we have taken the decision to keep this board permanently closed, but it remains viewable for users who may find some useful information in it. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Rightmove April +1.7%

1101113151619

Comments

  • DervProf
    DervProf Posts: 4,035 Forumite
    ukcarper wrote: »
    Don’t you think that the fact that over 3x as many people go to university now than did in 1980 would have some effect of the number of people under 35 buying?

    See linton beat me to it.

    It might well do, but out of those extra people who now go to university, you have to consider the debt they leave university with, the qualifications they have, and if they can get a job, and how much that job pays. Of course, current property prices might also effect the number of people in certain age brackets who buy, or are able to buy.
    30 Year Challenge : To be 30 years older. Equity : Don't know, don't care much. Savings : That's asking for ridicule.
  • ukcarper
    ukcarper Posts: 17,337 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    edited 19 April 2011 at 2:43PM
    DervProf wrote: »
    It might well do, but out of those extra people who now go to university, you have to consider the debt they leave university with, the qualifications they have, and if they can get a job, and how much that job pays. Of course, current property prices might also effect the number of people in certain age brackets who buy, or are able to buy.

    Your right to say that the price of property is the reason the average age of a FTB has increased is much to simplistic.
  • ultrawomble
    ultrawomble Posts: 492 Forumite
    Interesting that the number of sub-25 FTBs was very low in times of very lax mortgage lending criteria i.e. even when 100-125% mortgages were available.
  • chucky
    chucky Posts: 15,170 Forumite
    10,000 Posts Combo Breaker
    ukcarper wrote: »
    Don’t you think that the fact that over 3x as many people go to university now than did in 1980 would have some effect of the number of people under 35 buying?

    See linton beat me to it.
    things like this aren't relevant to the discussion with the usual suspects.

    they'll come back with a totally different answer to the subject of your post.
  • DexterA
    DexterA Posts: 166 Forumite
    edited 19 April 2011 at 1:25PM
    Increasing house prices aren't only bad for First Time Buyers.

    Increasingly parents are having to finance their children's purchase.

    High house prices are bad for society, Social mobility and many older folk.

    n-v15.02.11-table-two-assisted-ftbs.jpg

    Conservative lending criteria have led to lower LTV ratios and much greater dependence by FTBs on the bank of mum and dad. Those aged under 30 are now heavily reliant on parents and other relatives for financial support. We estimate that, in 2005, 38% of those aged under 30 required help with their deposit. Table Two shows that by 2009 an estimated 84% of FTBs in this group were assisted.
  • chucky
    chucky Posts: 15,170 Forumite
    10,000 Posts Combo Breaker
    DexterA wrote: »
    Increasing house prices aren't only bad for First Time Buyers.

    Increasingly parents are having to finance their children's purchase.

    High house prices are bad for society, Social mobility and many older folk.

    n-v15.02.11-table-two-assisted-ftbs.jpg

    Conservative lending criteria have led to lower LTV ratios and much greater dependence by FTBs on the bank of mum and dad. Those aged under 30 are now heavily reliant on parents and other relatives for financial support. We estimate that, in 2005, 38% of those aged under 30 required help with their deposit. Table Two shows that by 2009 an estimated 84% of FTBs in this group were assisted.
    it's the deposit criteria that's the problem not the house prices if you want to bring in bank of mum and dad into the discussion.

    the income multiple is about the same but the size of the deposit as a percentage of income has soared which is why assisted FTB's are higher.

    n-v15.02.11-table-one-typical-ftb-deposit-illustration.jpg
  • FTBFun
    FTBFun Posts: 4,273 Forumite
    DexterA wrote: »
    Increasing house prices aren't only bad for First Time Buyers.

    Increasingly parents are having to finance their children's purchase.

    High house prices are bad for society, Social mobility and many older folk.

    Fair point on the first two - but I disagree with this. Surely "older folk" are those most likely to have been able to purchase a property by that stage?
  • DexterA
    DexterA Posts: 166 Forumite
    chucky wrote: »
    it's the deposit criteria that's the problem not the house prices if you want to bring in bank of mum and dad into the discussion.

    the income multiple is about the same but the size of the deposit as a percentage of income has soared which is why assisted FTB's are higher.

    n-v15.02.11-table-one-typical-ftb-deposit-illustration.jpg

    So a higher deposit is needed to buy a first time property? Which is often a tiny one or two bedroom flat (thanks for high density homes you labour idiots).

    House price cheerleaders are wrong, unaffordable housing is bad for the country and the economy.
  • DexterA
    DexterA Posts: 166 Forumite
    FTBFun wrote: »
    Fair point on the first two - but I disagree with this. Surely "older folk" are those most likely to have been able to purchase a property by that stage?

    True.

    I was thinking more older folk having to raid their savings to help their children or grandchildren get an outstretched finger grasp on a tiny starter home.
  • FTBFun
    FTBFun Posts: 4,273 Forumite
    DexterA wrote: »
    True. I was thinking more older folk having to raid their savings to help their children or grandchildren get an outstretched finger grasp on a tiny starter home.

    Well there's one way around that - build more houses.

    I do note however your choice of words on starter homes - what is wrong with a one or two bedroom flat as a first home?
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 352.3K Banking & Borrowing
  • 253.6K Reduce Debt & Boost Income
  • 454.3K Spending & Discounts
  • 245.3K Work, Benefits & Business
  • 601.1K Mortgages, Homes & Bills
  • 177.5K Life & Family
  • 259.2K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.