Millions give up on owning property

Graham_Devon

http://www.citywire.co.uk/money/millions-give-up-on-owning-property/a493564?ref=citywire-money-latest-news-list

Over 30% of Britons – some six million people – have given up entirely on the idea of ever buying their own house, new research today revealed.

Those who do still intend to buy a house one day meanwhile, do not expect to be able to do so until they are 38 years old, or 48 years old if they live in London, according to price comparison website moneysupermarket.com. And only 5% of potential first-time buyers have a deposit saved.

And the reason?

Clare Francis of moneysupermarket.com said: ‘House prices may have fallen in many areas but they are still high. This coupled with the need for such a high cash deposit is pushing many people out of the market’.

‘There is still limited choice if you have a deposit of less than 10%, and the rates on these mortgages are around 5.30%, which is significantly higher than the most competitive rates,’ Francis added. ‘This also means that the monthly repayments first time buyers face are often higher than for those who have larger deposits to put down’

ViolaLass

5.3% may be high for now but it's a lot lower than interest rates have been. People survived then.

chewmylegoff

With the owner occupier rate at 68% already, this stat is quite clearly nonsense.

HAMISH_MCTAVISH

Graham_Devon wrote: »

And the reason?

Yep..... The reason.

the need for such a high cash deposit is pushing many people out of the market’.

‘There is still limited choice if you have a deposit of less than 10%, and the rates on these mortgages are around 5.30%, which is significantly higher than the most competitive rates,’ Francis added. ‘This also means that the monthly repayments first time buyers face are often higher than for those who have larger deposits to put down’

Cleaver

Graham_Devon wrote: »

Over 30% of Britons – some six million people – have given up entirely on the idea of ever buying their own house, new research today revealed.

Don't 70% of people currently own compared to 30% who currently rent? Therefore, 30% of people not being able to buy seems about right really.

I'm probably going to get my head ripped off for saying this, but isn't it kinda logical that the bottom 30% of earners in this country won't be able to afford to buy a house?

ermine

rates on these mortgages are around 5.30%, which is significantly higher than the most competitive rates

I paid 14% in the early 1990s. You ain't seen nuthin' yet, guys... What part of inflation do you not understand?

PasturesNew

Seen a lovely house today ... £1.1million. It was pretty perfect too .... I give up

chucknorris

Cleaver wrote: »

Don't 70% of people currently own compared to 30% who currently rent? Therefore, 30% of people not being able to buy seems about right really.

I'm probably going to get my head ripped off for saying this, but isn't it kinda logical that the bottom 30% of earners in this country won't be able to afford to buy a house?

Agreed it's more like the people who dreamed of buying (but never actually had much chance) finally coming to terms with reality.

ILW

Why don't all these people just save up a deposit and go and buy a house?

[Deleted User]

Because all the rich folk snap them up fast and rent them out to the poor folk who have to wait or cant get a mortgage. Richer get richer, poor are kept that way

ukcarper

Why though in Rushmoor Hampshire 30% percentile male full time £24k female full time £17.5k total £41.5k so 4x joint £166k. Plenty of 3 bed houses below £200k so if they had the 20% deposit saved up they would be able to buy. In fact there are plenty of 2 bed flats and houses between £160k and £170k.