The younger generation and the future cost of housing?

CLAPTON

drc wrote: »

In London, the average deposit required is apparently something like £70k. You would need to save up for a lot of years on a £24k income (before tax) just to have enough for the deposit, let alone the rest of the mortgage (and you would probably be buying a very small property at that).

maths education in the UK is somewhat inadaquate

averages include £20 million houses as well as £150k flats
the latter don't require 70K deposits

PasturesNew

MrRee wrote: »

True to the partner piece ..... but, I'm sorry, I cannot believe than anyone is earning too much less than £24,000 these days.

I find it almost impossible to find any job paying more than £14-16k ... if you've not got a degree.

MrRee_2

kitschkitty wrote: »

It must be nice in your world, sadly most of us don't live there.

It is rather pleasant - but I didn't just fall on it ..... it took hard work, lots of evening study, lots of interviews, lots of promotions, lots of skill.

I do fear that the youth of today are terrified of the grafting which is required to make things happen.

In the company I consult for, the apprentices are on around £24,000 ..... they very quickly progress to well over £45,000 before they are 28 years old. If they are dedicated and good at what they do.

To be brutally honest, £24,000 a year is a poverty wage and it should be made illegal.

oldvicar

drc wrote: »

What happens if the parents have 4 kids to leave property to and each of them wanting/having families of their own. Not much money or space to go around.

Then that's a 25% deposit each. A foot on the housing ladder, if the kids haven't already retired by the time they inherit.

MrRee wrote: »

True to the partner piece ..... but, I'm sorry, I cannot believe than anyone is earning too much less than £24,000 these days.

I believe that the majority of worker earn less than £24,000. Especially younger people in most of the country. Average (mean) earnings are supposed to be £26K, but this includes older workers at peak earnings, highly paid workers such as investment bankers, and workers in higher wage areas such as London. Its easy to see how the typical worker on Median earnings will earn less than £24K. Of course 90% of them then have their earnings topped up by means tested benefits (aka Tax Credits).

drc wrote: »

In London, the average deposit required is apparently something like £70k. You would need to save up for a lot of years on a £24k income (before tax) just to have enough for the deposit, let alone the rest of the mortgage (and you would probably be buying a very small property at that).

Earnings tend to be higher in London. And homebuyers on ordinary wages tend to commute from cheaper areas.

PasturesNew

MrRee wrote: »

It is rather pleasant - but I didn't just fall on it ..... it took hard work, lots of evening study, lots of interviews, lots of promotions, lots of skill.

I do fear that the youth of today are terrified of the grafting which is required to make things happen.

In the company I consult for, the apprentices are on around £24,000 ..... they very quickly progress to well over £45,000 before they are 28 years old. If they are dedicated and good at what they do.

To be brutally honest, £24,000 a year is a poverty wage and it should be made illegal.

How much are you paying people of 50+ without specialised training or a degree?

chucky

drc wrote: »

In London, the average deposit required is apparently something like £70k. You would need to save up for a lot of years on a £24k income (before tax) just to have enough for the deposit, let alone the rest of the mortgage (and you would probably be buying a very small property at that).

2 things, using an average salary to see if everybody should buy property is pointless. Not everyone is able to buy property so average is meaningless.

Secondly, buying property isn't something that people have to do in their lives, they can always rent. 40 years ago the number of people buying was much lower and in the 1920 much lower. Buying property isn't a stage in life like getting married, having children or getting christened or retiring. There are other options to buying property.

PasturesNew

chucky wrote: »

There are other options to buying property.

Renting is equally unaffordable ... and, with the current model, there's no sense of place, no sense of permanence... you know you're there at the whim of a LL.

Renting needs to be cheaper too.

oldvicar

MrRee wrote: »

In the company I consult for, the apprentices are on around £24,000 .....

To be brutally honest, £24,000 a year is a poverty wage and it should be made illegal.

Presumably no more apprentices at this company then. In the long term no more Company, and no lucrative consultancy for the next generation of Ree's.

chucky

PasturesNew wrote: »

Renting is equally unaffordable ... and, with the current model, there's no sense of place, no sense of permanence... you know you're there at the whim of a LL.

Renting needs to be cheaper too.

I'm not going to agree it's unaffordable because that would mean not many people can afford it but will agree that there lies part of the problem too. A problem where tenants have little control or rights for the rent they pay.

Itismehonest

There has always been a large proportion of people who had no hope of owning their own home. In fact, it was once the minority who could afford to do so.

What we lack now that we used to have are the different forms of housing that were once available.

Across the years & depending on jobs, a fair bit of housing came with the job (both in rural & urban areas) &, contrary to popular opinion, people were often allowed to live their lives out in their homes.

Then, of course, there was council housing.

As the need for manpower has decreased the worker's houses have been sold off. Councils have also sold their housing stock without building new.

The need is not so much that everyone should be able to own a home as that everyone should have a home they can afford - be that bought or rented.