Average family will have to save for more than 30 years to raise first deposit

newDude

Saving for deposit on a home 'will take 31 years'... but in 1993 it only took eight

http://www.dailymail.co.uk/news/article-2071421/Saving-deposit-home-31-years--1993-took-eight.html

DervProf

It's only because of those mean banks. Nothing to do with price rises in recent years. HPI is a good thing, you see. If the banks would reduce their deposit requirements, or preferably remove them, everything would be fine.

Or maybe this is the fallout from several years of a "fast and loose" property/mortgage market.

chewmylegoff

newDude wrote: »

Saving for deposit on a home 'will take 31 years'... but in 1993 it only took eight

http://www.dailymail.co.uk/news/article-2071421/Saving-deposit-home-31-years--1993-took-eight.html

Seems fairly stupid.

Their figure isn't for an average family but for a family with earnings of £18.5k trying to buy a house for £125k. No real attempt here to come up with credible numbers, just some made up sensationalist drivel. Which is no surprise given the source.

PasturesNew

It's a shame the title doesn't hint that the focus of the article is about how evil letting agents and greedy landlords are emptying the pockets of people so they have nothing left over to save.

justjohn

This average person on 18.5k wanting a 125k house, Is this also the average person that mis manages money or is it the average thrifty spender?

Just read the artictle....

"Putting away £930 a year, it would take them 31 years to save the deposit of £28,750 – or 23 per cent of the price of the house – required to get a mortgage"

Why is it 23%?(assume that is because of the mortgage multiplier)

The average person does not always buy the average house never mind the first time buyer.

Most first time buyers are at bottom end of market.

wotsthat

Headline "Average family will have to save for more than 30 years to raise first deposit"

Well whats an average family?

The report considered low to middle-income families bringing in between £12,000 and £42,000 a year.It established an average of £18,600

Oh right I get it. An average family is an average of low to middle income families - no bias there then.

I don't buy newspapers for this very reason - in this case I actually begrudge the bandwidth I've just wasted.

justjohn

wotsthat wrote: »

I don't buy newspapers for this very reason - in this case I actually begrudge the bandwidth I've just wasted.

lol..........

quantic

PasturesNew wrote: »

It's a shame the title doesn't hint that the focus of the article is about how evil letting agents and greedy landlords are emptying the pockets of people so they have nothing left over to save.

While I agree with what your saying, I don't think these BTL landlords are driving around in Ferrari's like the media would have you believe. I think its more a case of "if you can't beat them"... I know quite a few people who have BTL properties and while some of them are fairly well off its far from the glamourous lifestyle many people perceive it to be.

Many people who do BTL are just trying to make ends meet as well, and things they do like not maintaining the property is not because they want to be greedy, they just dont make enough from the property overall to have anything left to do it.

The owner of the other semi that ours is attached to, charges more in rent than we pay in mortgage so it may seem like the tenants are getting a raw deal, but the owners make a loss.

quantic

Additionally, this might be a very naive view, but I always thought it was best to save up for a house BEFORE having the family?

Graham_Devon

justjohn wrote: »

The average person does not always buy the average house never mind the first time buyer.

Most first time buyers are at bottom end of market.

To be fair, £125k isn't the average house either.

Infact it's below the average FTB house, which, last time I read, was £136k.

DaddyBear

quantic wrote: »

Additionally, this might be a very naive view, but I always thought it was best to save up for a house BEFORE having the family?

The average age of a first time buyer is mid thirtys. Many don't want to risk waiting that long..... Increased incidence of birth defects, higher miscarriage rates, bigger maternal risks, risks of infertility..... Etc.
This is the sad state the country has been left in because of ten years of stupidity.