Time for a new generation to enjoy same opportunities as their parents...

HAMISH_MCTAVISH

Time for new generation to enjoy 'opportunity' of 95 per cent mortgages

First time buyers should enjoy the same opportunity as their parents did to benefit from 95 per cent mortgages, a minister has said.

A Treasury analysis has found that the average mortgage for a first time buyer in the 1980s and 1990s was around 95 per cent.

By last year, however, the average had fallen to 80 per cent.

Sajid Javid, the Economic Secretary to the Treasury, said: "These figures show that these mortgages got a whole generation of people onto the housing ladder.

It's right that the next generation, that can afford mortgage payments but don't have large savings, have the same opportunity."

http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/10359425/Time-for-new-generation-to-enjoy-opportunity-of-95-per-cent-mortgages.html

:beer:

AlexLK

I'm not sure this is the answer, nor am I sure the government propping up the housing market is either. My wife and I managed to buy quite a nice house. However, if we lived further south and was not willing to buy something "work in progress" we could not have afforded anywhere near the property we are living in now. Currently, the house is worth about £220,000, even though it would not sell quickly. In contrast, my parents bought their current house in the early eighties for much less than I bought my house for, renovated it and now it has got to be worth over £1,000,000. They openly admit they would not have spent that much money on it.

THE_MASKED_TURNIP

I don't care what anyone says, if we don't help today's young onto the ladder with the same prospects as us boomers did then what does it say about our generation. The fact that we have engineered fantastic schemes and opportunities to help them purchase their first house and get that first crucial step onto the ladder should be celebrated.

AlexLK

Turnip: Absolute rubbish! The "boomers" lived through a time of fabulous economic growth. Today, people my age (early thirties) and below are going to find very difficult to not only get on but move up the ladder, if their own parents struggled, only owning a modest house or renting. One could say this country was a meritocracy during the latter part of the twentieth century. However, things do not look so rosy now. (All IMO, of course).

System

AlexLK wrote: »

Turnip: Absolute rubbish! The "boomers" lived through a time of fabulous economic growth. Today, people my age (early thirties) and below are going to find very difficult to not only get on but move up the ladder, if their own parents struggled, only owning a modest house or renting. One could say this country was a meritocracy during the latter part of the twentieth century. However, things do not look so rosy now. (All IMO, of course).

Do you not think your viewpoint is slightly effected by £33k debt?

I'm 32 and I can't really relate to what you said or know anyone in that age group that it could relate to.

JencParker

It's all very well giving them more borrowing opportunities, but the shortage of housing keeps many out of the market who would have been able to buy in the past and keeps the prices rising beyond the affordability of most. Add the foreign investment buyers and BTL (which, in the past, was so small it did not make any impact on available property) and the available property is even scarcer.

AlexLK

Joeskeppi wrote: »

Do you not think your viewpoint is slightly effected by £33k debt?

I'm 32 and I can't really relate to what you said or know anyone in that age group that it could relate to.

Absolutely not. My wife has a professional job and I run my own ltd company. In years gone by we would have been able to build up to the levels my own parents did. However, that seems practically impossible these days. It looks as if my parents will have to pay for my son's education or we shall have to send him through the state system, at least for his younger years.

JencParker wrote: »

It's all very well giving them more borrowing opportunities, but the shortage of housing keeps many out of the market who would have been able to buy in the past. Add the foreign investment buyers and BTL and the available property is even scarcer.

I do wonder where this apparent "shortage" has come from, there are many, many derelict houses around here (some rather grand ones even).

System

AlexLK wrote: »

Absolutely not. My wife has a professional job and I run my own ltd company. In years gone by we would have been able to build up to the levels my own parents did. However, that seems practically impossible these days. It looks as if my parents will have to pay for my son's education or we shall have to send him through the state system, at least for his younger years.

It certainly isn't "practically impossible". Of the 30-40 people I know and consider friends who are between 30 and 35 all but 2 couples I can think of own their own house, and that's in the south east.

I'm ever so sorry to hear your son may have to be educated with the normal kids though.

THE_MASKED_TURNIP

AlexLK wrote: »

Absolutely not. My wife has a professional job and I run my own ltd company. In years gone by we would have been able to build up to the levels my own parents did. However, that seems practically impossible these days. It looks as if my parents will have to pay for my son's education or we shall have to send him through the state system, at least for his younger years.



I do wonder where this apparent "shortage" has come from, there are many, many derelict houses around here (some rather grand ones even).

Absolutely nothing wrong with State education. Your comment and fact of near 33k debt makes me believe that the youth of today suffer from delusions of grandeur and self entitlement.

Graham_Devon

Hang on? Hamish? Are you saying today's generation didn't have it as easy as their parents?!

That's a turn around old chap!

JencParker

AlexLK wrote: »

Absolutely not. My wife has a professional job and I run my own ltd company. In years gone by we would have been able to build up to the levels my own parents did. However, that seems practically impossible these days. It looks as if my parents will have to pay for my son's education or we shall have to send him through the state system, at least for his younger years.



I do wonder where this apparent "shortage" has come from, there are many, many derelict houses around here (some rather grand ones even).

I appreciate it is very different across the country, but I live in Greater London and there is a shortage in and around London and is spreading as people move further out as London properties are bought by foreign investors and for BTL or they are downsizing.