Are home owners happy that prices rise and price out young

ukcarper

CreditCrunchie wrote: »

What do you mean?

What I mean is there is nothing stopping large organizations buying or building property and renting it out but none are and without BTL there would be very little new rental property.

chucknorris

ukcarper wrote: »

Lots of complaints about BTL but no one else seems willing to invest in rental property.

I think that they are a bit expensive now, the yields are a bit too low for my liking.

sulphate

CreditCrunchie wrote: »

CLAPTON wrote: »

if you are in your 30s why haven't you already saved for a deposit?

why don't you have a credit history : all you need is a simple credit card and use it a bit and pay in[/QUOTE
Because we had no wish to buy. We've always been better off renting in terms of choice if area and type of house. However after having to move 3 times in short succession due to landlord's deciding to sell or raise the rent a ridiculous amount, we now feel forced to buy just to have some stability! As as mentioned above, at least we have the ability (hopefully) to do this, but it is certainly not as easy as ooh let's go and buy a 100k house!

Owning may not be a basic right, but until the government steps in to bring the rental market in line with the rest of Europe, it's going to remain a very strong desire. Being stuck in the rental trap is not a good thing.

You mean that you didn't make saving for a deposit on your priority list. That was your choice.


DH and I bought our first house last year. I've noticed that a lot of would be FTBs I know (most of whom earn more than we do) have very romantic notions about the type of house they'll be able to buy. We have a little two bedroom cottage that will suffice until we have a baby if not longer. Two friends of mine just bought a huge 4 bedroom house as their first home and now the rest of them all think this is a standard FTB purchase.

CLAPTON

CreditCrunchie wrote: »

Most countries where renting is the norm have far more stringent tenant rights and longer tenancies. In the UK rents are higher, 6 month ast's are the norm, and buy to let landlords rule the market.

and of course the legal responsibilities on the tenant are more stringent and tenants often have to pay a considerable sum upfront.

92203

ukcarper wrote: »

Prices in relation to average wage were higher before 1997 and interest rates were a lot higher.

Have you got any data to back this up?

From the data I've seen, house price: earnings ratios were much lower, to the point that the typical FTB would have been better off in the mid - late 90s.

The detached family home my dad bought on his school teacher's wage back in the early 90s was a tad below 90k. As a head of department, his salary was £24K. *I do recall things being a bit tight initially, though it never stopped him buying a caravan and a 3 year old Volvo

This is a pretty interesting read

http://www.thisismoney.co.uk/money/bills/article-1633409/Historic-inflation-calculator-value-money-changed-1900.html

Virtually everything has gone up quicker than wages.

ukcarper

92203 wrote: »

Have you got any data to back this up?

From the data I've seen, house price: earnings ratios were much lower, to the point that the typical FTB would have been better off in the mid - late 90s.

The detached family home my dad bought on his school teacher's wage back in the early 90s was a tad below 90k. As a head of department, his salary was £24K.

This is a pretty interesting read

http://www.thisismoney.co.uk/money/bills/article-1633409/Historic-inflation-calculator-value-money-changed-1900.html

Virtually everything has gone up quicker than wages.

http://www.housepricecrash.co.uk/graphs-average-house-price-to-earnings-ratio.php


Later figures available on Nationwide site.


Between 1990 and 2011 earnings increased by 2.27x while RPI increased by 1.86x

ukcarper

92203 wrote: »

Have you got any data to back this up?

From the data I've seen, house price: earnings ratios were much lower, to the point that the typical FTB would have been better off in the mid - late 90s.

The detached family home my dad bought on his school teacher's wage back in the early 90s was a tad below 90k. As a head of department, his salary was £24K. *I do recall things being a bit tight initially, though it never stopped him buying a caravan and a 3 year old Volvo

This is a pretty interesting read

http://www.thisismoney.co.uk/money/bills/article-1633409/Historic-inflation-calculator-value-money-changed-1900.html

Virtually everything has gone up quicker than wages.

From your interesting read bear in mind earnings increased 42x (4100%) over that period

CreditCrunchie

CLAPTON wrote: »

and of course the legal responsibilities on the tenant are more stringent and tenants often have to pay a considerable sum upfront.

For responsible tenants that would not be a problem.

92203

ukcarper wrote: »

From your interesting read bear in mind earnings increased 42x (4100%) over that period

I was referring to the 1999-2013 comparison. I can't see anything about wages increasing by 4100%, though would expect them to have gone up quite significantly over the last 50 years due to decimalization and the hyper inflation of the 1970s. I would also expect to see a relative (in relation to wages) reduction in the cost of groceries and other consumables, due to improved manufacturing and farming methods, not to mention the benefits which mechanisation and automation have brought. With that point in mind, with the advancement of building, mass production and fabrication techniques and technology, why have housing costs been allowed to increase so much more in relation to wages?

If you look at the 1999 - 2013 comparison, wages are only up by 41%, while important things like bread and fuel etc have increased significantly more.

On that chart, housing is the worst offender!

CreditCrunchie

sulphate wrote: »

CreditCrunchie wrote: »

You mean that you didn't make saving for a deposit on your priority list. That was your choice.

Very true. I just wanted to point out though that high house prices don't just affect the young but all first time buyers regardless of their situation.

I'm not really sure what the answer is.