How can house prices be so high it's so unfair on the young stars

pelirocco

My grandparents built their own house , they bought a plot of land from the government for £10 , back in the early 30's , along with a few other people . My grandfather was a builder , they had saved every penny they could and built the house brick by brick or rather breeze block by breeze block , roofed with corregated tin , must have taken them a few years . They had no electricity .the water came from a well , therefore no running water , no mains sewerage . Its still standing , they eventually got the services but it was after many years
I wonder how many would do that now

Linton

pelirocco wrote: »

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Why would building more house reduce the prices ? they would all cost the same to build

The price of a house isnt determined by the building cost but rather by how much people are prepared to outbid each other to get one. If there are many more houses available to be bought compared with the demand a prospective buyer will get to the top of the queue earlier having not had to outbid so much.

The price of housing drives the price of building land. If a house would be worth say £300K if it was built on a plot of land, broadly speaking the value of the plot of land becomes £300K less the cost+profits of building the house.

This means that it is in the interests of the builders to compete by providing more "free" goodies and to squeeze in more 4-bedroomed detacheds onto land that would better fit smaller houses - they get a higher % of the £300K.

MrsE_2

pelirocco wrote: »

My grandparents built their own house , they bought a plot of land from the government for £10 , back in the early 30's , along with a few other people . My grandfather was a builder , they had saved every penny they could and built the house brick by brick or rather breeze block by breeze block , roofed with corregated tin , must have taken them a few years . They had no electricity .the water came from a well , therefore no running water , no mains sewerage . Its still standing , they eventually got the services but it was after many years
I wonder how many would do that now

Whats £10 from then in todays money?
I doubt you could get a house plot today for it.

Moto2

MrsE wrote: »

Whats £10 from then in todays money?
I doubt you could get a house plot today for it.

Local councils often have lots of 'brown field' sites
They could let it go cheaply or even lease it and encourage self-build clubs.
It'd take some working out how to protect it from investors in the early years but it could be done if there was the will.

CKhalvashi

pelirocco wrote: »

So would you put a minimum number of years before the houses could be bought ? selling them just above cost price could be seen as 'ripping off' the tax payer


Presumably with the proviso that if the houses were to be sold again , they cant be sold at market value ?


IMHO social housing should never be sold

With an extremely strict proviso that these are NOT investment properties, and can never be used for BTL.

I think to keep funds in the pot for new properties, there should be provision for sale, with limits based on 20% below market value maybe.

I also feel that the provision of lifelong housing, that can be adapted with ease for disability in later life should be seriously considered.

Another thing to do will be to utilise existing empty property, by force if necessary if the property is unnecessarily unoccupied for a length of time. The property would be property maintained, and rent paid maybe 40% below market, with ret received 20% below market, with tenancies for a minimum of 5 years and the difference used for the upkeep; owner gets a reasonable deal, as does tenant.

CK

BillJones

floridaman wrote: »

The boomers went on strike and got everything they wanted time for the young to do the same

OK, I'll ask you again. If they go on strike, how do you propose that they pay their rent, eat, or heat their houses?

Bloke1664

My thoughts for what its worth is we may see a brain drain where our brightest are more willing to give it a go somewhere else, will. I work in a well paid industry, and bought my first house in zone 2 when I was 27 (45 now). The guys working for me are 30-35 buying their first houses and are having to buy in zone 5+ just to afford to do so.

I wonder if we will ever see higher interest rates as if we do its gonna end badly.

CLAPTON

Bloke1664 wrote: »

My thoughts for what its worth is we may see a brain drain where our brightest are more willing to give it a go somewhere else, will. I work in a well paid industry, and bought my first house in zone 2 when I was 27 (45 now). The guys working for me are 30-35 buying their first houses and are having to buy in zone 5+ just to afford to do so.

I wonder if we will ever see higher interest rates as if we do its gonna end badly.

who do you think is buying the houses if well paid bright people aren't doing so?

Bloke1664

I'm not totally sure, but the girl who bought my house when I sold recently was about the same age as me when I bought it c12 years before, but she could only afford it as mummy & daddy gave her £500k towards it (and randomly she also works in the same industry as me).

I wonder if its a combination of the first round of inheritances just going to increase house prices as well as the affluent immigrants pushing prices up for London?

Have to admit I am a little confused as to how a 2 bed in zone 2 can be worth £500k, where 10yrs ago they were £250k, it certainly has come from income inflation and income multiples alone.

Bufger

Speaking as a young(ish) person - why would we be so worried if we didnt know any different?

I'm 29. I've been working since 16. I dont think i've ever managed to save more than £300 per month even as my working circumstances have improved, i've got promotions and bonus's etc. Whenever I get a bonus something needs fixing so we can continue to own a car, or keep warm etc. we have one holiday per year with the kids, we get to go out once or twice a month for a meal or for a night out. This is something that has never changed but we wouldnt know any different.

I dont think the younger generation will be as bothered as you think. You adapt to your circumstances - they have never known some of the good times you've known so they have easily adapted to hardship in some cases.