The younger generation and the future cost of housing?

drc

If so many of the younger generation (those in their late teens, twenties and early thirties) cannot get a mortgage or afford to put money aside for a deposit (due to high rents/living costs in comparison to income) which in turn means that they cannot put anything aside for a pension, what will happen when they reach an age where they are no longer employable or can't find work or if they reach pensionable age without owning a property/having a pension to pay the rent?

Surely the housing benefit bill is going to be absolutely massive as so few will own their own property and so few will have enough savings/pension (having spent it all paying their rent and high living costs) to be able to afford housing costs from their own pocket?

The_J

Since they are spending all their money on something it's likely to be booze and cigarettes so hopefully they'll be dead by the age of 70. Problem solved.

Graham_Devon

I guess they / we will have to do the same as they did in the 1920's. How did they get by then with rent and a state pension?

My guess is the same will happen, in some form or other. This crisis has got another decade to go in my humble opinion, so some will have seen 15 years going backwards instead of forwards. I certainly don't think we will see the personal prosperity since the 70's again. It's a broken system.

The_J

System is absolutely fine. It's just now the internet gives a mouthpiece to the poor to whine about being poor.

MrRee_2

Youngsters are no poorer than they were way back.

I struggled to get going, they are too.

The market finds it's own level .... there is, however, a bogey in the room and that is the BTL Landlords buying up all the FTB properties.

Higher Interest Rates will shake the whole market out .... BTL Landlords still need 7% yield - if Interest Rates can be had on savings at 6% then their money will be saved instead of buying FTB's houses.

FTB's will be able to buy repossessions relatively cheaply and rents will fall as the market and demand will fall.

Market forces will bring all back into balance eventually. And, in a free market, we cannot buck the market.

CLAPTON

maybe they will vote for a political party that will increase the number of houses built by changing the planning rules, introduce a land value tax and get rid of the affordable housing target nonsense.

Graham_Devon

CLAPTON wrote: »

maybe they will vote for a political party that will increase the number of houses built by changing the planning rules, introduce a land value tax and get rid of the affordable housing target nonsense.

I'd vote for it.

But that party doesn't exist.

PasturesNew

Graham_Devon wrote: »

I guess they / we will have to do the same as they did in the 1920's. How did they get by then with rent and a state pension?

There wasn't one. If you didn't have means and/or had no family to take you in, it was off to the Poorhouse for you.

The Poor of the out-parishes of St. Philip and Jacob, and of St. George, which contain about 16,000 inhabitants, are partly relieved at home, and partly in a Workhouse in which there are at present 85 persons.

The number of our Poor is about 200. It is singular that here it is thought most beneficial to the parishes to maintain the Poor at home, and that the Poor want to get into the house.

It is pleasantly situated and appears to be clean and comfortable. There are 2, or 3 beds of flocks and feathers in each room.

Bill of fare in the Workhouse:
Breakfast—every day, milk pottage.
Dinner—Sunday, Thursday, bread and cheese;
Monday, rice milk;
Tuesday, Friday, pease soup;
Wednesday and Saturday, pickled beef and vegetables.
Supper—every day, bread and cheese or butter.

3 pints of beer are allowed to each person on meat days, and a quart on other days.

One lb. of bread is given out daily and 9oz. of cheese every week.

Once a month 12lbs. of butter are distributed, and at particular seasons better fare is provided, more especially for the sick.

Source: http://www.workhouses.org.uk/Clifton/

chewmylegoff

Graham_Devon wrote: »

I'd vote for it.

But that party doesn't exist.

So set it up.

drc

Graham_Devon wrote: »

I guess they / we will have to do the same as they did in the 1920's. How did they get by then with rent and a state pension?

What did they do in the 1920's (do you mean die) . I suppose all renter serfs could be euthanized en masse when they are no longer needed .

DELLBOY_2

MrRee wrote: »

Youngsters are no poorer than they were way back.

I struggled to get going, they are too.

The market finds it's own level .... there is, however, a bogey in the room and that is the BTL Landlords buying up all the FTB properties.

Higher Interest Rates will shake the whole market out .... BTL Landlords still need 7% yield - if Interest Rates can be had on savings at 6% then their money will be saved instead of buying FTB's houses.

FTB's will be able to buy repossessions relatively cheaply and rents will fall as the market and demand will fall.

Market forces will bring all back into balance eventually. And, in a free market, we cannot buck the market.

change the record