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Debate House Prices
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Man babies
Comments
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The ability of a society to adapt to changing cost pressures is crucial.
Younger people will have to adapt to meet a whole variety of new challenges in the future.
Reducing their housing costs; changing their transport to lower cost forms; taking career breaks to retrain; job losses. All sorts of factors come into play.
What seems harder to change is the old fashioned attitude that renting or living at home is somehow inferior. It's the 21st century people. Sweep away the cobwebs of those old outmoded views
The trouble is that carrying on living with parents can cause long term practical problems. Once the parents die off the siblings will want their inheritance - are they going to let the old unmarried brother/sister continue to live in the house? I doubt it.0 -
Where do you get that £2000 pa from I don't think it is right.
Here is a link to nationwide average earning to house prices
http://www.housepricecrash.co.uk/graphs-average-house-price-to-earnings-ratio.php
Last updated in 2006! Do you have anything more recent?
One thing to bear in mind is that there are more and more dual income households nowadays, so affordability is higher than you might think. In the 1970s far fewer women worked.0 -
Last updated in 2006! Do you have anything more recent?
One thing to bear in mind is that there are more and more dual income households nowadays, so affordability is higher than you might think. In the 1970s far fewer women worked.
The latest graph is on Nationwide report for July 2013 and but it only goes back to 1983 ratio is now about 5.2x.
I think it's difficult to compare as people generally left full time education earlier and married earlier.0 -
The latest graph is on Nationwide report for July 2013 and but it only goes back to 1983 ratio is now about 5.2x.
I think it's difficult to compare as people generally left full time education earlier and married earlier.
Indeed. People used to buy in their early 20s, well before they reached their peak earning potential, while many people now wait until their mid-late 30s when they are likely to be earning much more and also have bigger deposits.0 -
JencParker wrote: »The average wage in 1973 was around £2000 pa. The average house prices was £10,000 - five times the average income.
The average wage at the end of 2012 was 26,500. The average house price £250,000 - nearly 10 times the average income.
I'd call that quite a considerable difference.
Add to that the fact that rents were reasonable, rented property was available with security of tenure in both the private and LA sectors.
why didn't everyone own their own property is those golden years?0 -
Indeed. People used to buy in their early 20s, well before they reached their peak earning potential, while many people now wait until their mid-late 30s when they are likely to be earning much more and also have bigger deposits.
I would say in general people reached their peak earning earlier.0 -
why didn't everyone own their own property is those golden years?
Well, judging by your childish responses to my posts, I'm guessing you weren't around in 1973!
If you had been around, you would know that 1973 were very far from being golden years, financially or politically!
However, there were viable and affordable alternatives to buying. Generally, people wanted a 'home'. In addition to Council Housing, private rentals were far more affordable and secure, and rents were far more controlled, unlike today with BTL where a tenant is not only paying the LL's mortgage but also contributing to his pension pot! Greed, money and profit at any cost did not have the importance it seems to have for many today.0 -
The trouble is that carrying on living with parents can cause long term practical problems. Once the parents die off the siblings will want their inheritance - are they going to let the old unmarried brother/sister continue to live in the house? I doubt it.
I would suggest that the few will carry on living with their parents that long and those that do would have done so regardless.
The young of today are likely to start their adult life with a debt of around £20,000. Then you have the current high unemployment rates amongst the young and the high cost of housing. For those who do have a secure job, high rents (in London at least) means a very large percentage of their income is taken up by necessary living costs leaving little for saving. With reduced outgoings by living at home, they are able to save more quickly.0 -
JencParker wrote: »With reduced outgoings by living at home, they are able to save more quickly.
Yes, or the parents can just give them the money anyway.0 -
JencParker wrote: »Well, judging by your childish responses to my posts, I'm guessing you weren't around in 1973!
If you had been around, you would know that 1973 were very far from being golden years, financially or politically!
However, there were viable and affordable alternatives to buying. Generally, people wanted a 'home'. In addition to Council Housing, private rentals were far more affordable and secure, and rents were far more controlled, unlike today with BTL where a tenant is not only paying the LL's mortgage but also contributing to his pension pot! Greed, money and profit at any cost did not have the importance it seems to have for many today.
Well you know best
so although houses were cheap and plentiful, people in those days preferred to live in council houses or private rentals.0
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