Youth unemployment and owning a home

Graham_Devon

Derivative wrote: »

Either you pay a lot of money (hence the highly paid job) and live in a rich area.
Or you pay less money and live in a poorer area.

So who provides the lower end services to the rich people in the rich areas?

You know, shop workers, dustmen, nurses?

UrWntr

Graham_Devon wrote: »

So who provides the lower end services to the rich people in the rich areas?

You know, shop workers, dustmen, nurses?

Is that a serious question? :rotfl:

Itismehonest

ukcarper wrote: »

That's pretty much like it was in the 70s I'm sure it would work especially if the last part was included in might even drop the prices of houses a bit as the BTLs came on the market but it wouldn’t do anything for people who wanted to rent as eventually the only rental properties would the few housing association sand council properties.

True, sadly.
A crash isn't the answer either. Those that have money to buy now will just have more money to buy more properties if the bottom fell out of the market.

There needs to be a consolidation & some way of starting people off in property with sensible mortgages but that will only work if the recent idea of property as a fast buck changes.
At the moment many properties which could be FTB material are, indeed, snapped up by BTL. This keeps that band of housing high in price. It becomes a vicious circle where people have to rent & so rents increase. Every repossession puts someone else on the rental market & so demand grows bringing more aspiring BTL owner into the market. At some time it reaches a point where it can't go on or not at the same rate, anyway.
It's another version of the 2nd homes problem in pretty little Cornish villages.

Personally, I have always felt that there should be some sort of percentage cap on the number of properties in areas which can be non owner-occupier be that holiday rentals or BTL etc. Obviously different areas have different requirements - students living in large uni towns for example.

There really are few alternatives currently other than freeing up empty properties & building more affordable homes.

The benefit cap may, strangely, force some LL to rethink their prices - it is, after all, them that 'benefit'. Some may even find that they can no longer afford their properties if rental income falls & more properties may come back onto the market. The more competition to sell the lower the prices.
Don't get me wrong, there's room & necessity for all sorts of property owners including BTL but there needs to be a balanced approach area by area, I think.

StevieJ

Angry_Bear wrote: »

Hm, I've heard a lot of debate on both sides of this fence so finally decided to do a (tiny) bit of googling:

1975 average house price: 10k, average salary 2,291: ratio 4.3x salary.

2010 average house price 213,116, average salary 23,504: ratio 9x salary.

I accept that using averages is problematic (as is trusting a 5-minute google), but those figures certainly give food for thought.

I bought in Oct 1988 and according to the Halifax index.

Oct 1988 = P/E ratio of 4.78
Jan 2012 = P/E ratio pf 4.32

I will ignore the 12% soon to be 15% BR :eek:

I admit that inflation adjusted house prices were cheaper but not that much.
House Price Oct 1988 = £48,493
Current House price = £55,175




http://www.lloydsbankinggroup.com/media1/economic_insight/halifax_house_price_index_page.asp

Derivative

Graham_Devon wrote: »

So who provides the lower end services to the rich people in the rich areas?

You know, shop workers, dustmen, nurses?

Renters, people who commute, council tenants.
Is it a nice state of affairs? Perhaps not. But it's what we have.

RenovationMan

Derivative wrote: »

Renters, people who commute, council tenants.
Is it a nice state of affairs? Perhaps not. But it's what we have.

Shared ownership, etc. Why do some people see home ownership as a basic human right?

Derivative

RenovationMan wrote: »

Shared ownership, etc. Why do some people see home ownership as a basic human right?

Because they ignore economics.

Limitations of natural resources such as land almost inevitably cause situations such as the one in the UK. We just have a fairly unusual situation in that we have one extremely dominant city/urban area as opposed to a few of them, exacerbating the problems.

When you have one city which is so vast as to force almost all people with ambition to live/work there, you are going to have a situation in which home prices rise above the average wage.

London and the South East are not 'average' places to live. There are colossal benefits to be derived from having all of the facilities available 'locally'. An above-average place to live logically commands pricing above the average.

The problem comes when we start to believe that everyone can have this standard of living.

Think about it logically - if home prices in Greater London were the same as in Hull, far more people would choose to live there. It's pretty packed already. Would you like to double the number of homes?

I would like to see population density across the UK graphed against time - I suspect growth has been much higher in the regions where homes are seen as 'unaffordable'.

We live in reality. Not in a perfect ideal world where everyone gets what they want for Christmas.

UrWntr

CraigD wrote: »

UrWntr!? So your only solution is to work harder and get a higher paid job mouth hits the floor....How about looking at why we are paying so much for essentials?

Rent prices will rise as buying a house becomes harder. That is a given. Demand increases means higher prices. I am not just talking about now. I am looking ahead 18 months to 2 years time. By unaffordable I don't mean not having the money to pay for the rent or mortgage but choosing what to prioritise. Heating, food, shelter. There will be an increase in homelessness look at the USA.

Originally posted by UrWntr
"Just because you don't earn enough money to rent/buy does not mean that everyone is in the same boat. In fact, you are the minority."

I take exception to you putting you in bold type. You are accusing me of somehow being wrong to be in the minority. It is not the case that I am in the minority and even if I was does that make my opinion any less valid.

If you want to reply to a post, you should hit the quote or reply button again. Editing an older post is confusing

An opinion can still be false when it is stated as fact. Saying "there is no affordable housing for the youth" is not an opinion, it's a lie.

DaddyBear

lostinrates wrote: »

Daddy bear, on a practicL basis, would you commute?

I do commute. I'll be rotating to 4 different hospitals in the next 4 years, so I've had to choose my location very carefully.

lostinrates

DaddyBear wrote: »

I do commute. I'll be rotating to 4 different hospitals in the next 4 years, so I've had to choose my location very carefully.

Four? Thatmust make your area from bath quite large. . Makes location more difficult certainly