Young adults face housing squeeze

Graham_Devon

A growing proportion of young people have been squeezed out of the housing market in England and are renting privately instead, a report suggests.

The financial crisis saw a fall in the proportion of the under 35s owning their own home, the English Housing Survey shows.
Some 21% of people in this age bracket were mortgage holders in 2008-09.

However, this fell to 18% in 2012-13, with more renting privately, and so paying more of their income on housing.

Private renters aged 25 to 34 increased from 31% in 2008-09 to 45% in 2012-13, the report said.

Usual argument blaming the usual stuff. It's not the fault of prices, it's the fault of the banks for not lending more and asking for higher deposits.

However, some space is given to Alex Hilton to make the point that private rentals are being used as a financial thumbscrew on the younger generation who have no other choice. It's hard to see how this can be seen as anything other than exploitation.

Articles like this, and research like this will never point out that in order to buy, you need to save a deposit. If you are renting, it's often difficult to save a deposit.

On the other hand, if you are a BTL landlord with some funds, you can take a BTL mortgage with much greater ease than your competitor, the younger person struggling to save a deposit while also paying rent.

It's always the missing piece of the jigsaw in these articles which always blame the lack of lending. What about the other side of the coin? The BTL landlords buying up all and sundry, and, as Alex Hilton states, exploiting the young.

It's alright just offering greater loans at lower deposit levels, but this just pushes up housing further, it's a vicious circle. One which the media seem to treat as the elephant in the room. The private sector rental has now overtaken the social rented sector for the first time.

You can't lambast the banks for lending too much and then lambast them for not lending enough.

http://www.bbc.co.uk/news/business-28439024

carslet

The obvious thing is that house prices are too high, but this is the case in most of the world not just UK,

I don't think anything can be done about it or will get done about it. I worry about the future generations,

HAMISH_MCTAVISH

Graham_Devon wrote: »

Articles like this, and research like this will never point out that in order to buy, you need to save a deposit. If you are renting, it's often difficult to save a deposit.

Particularly when rents shoot up as a result of the housing shortage being worsened by restricted mortgage lending.

Which you cheered on.... Despite being repeatedly warned this would happen.

On the other hand, if you are a BTL landlord with some funds, you can take a BTL mortgage with much greater ease than your competitor, the younger person struggling to save a deposit while also paying rent.

Yes Graham.

Restricting mortgage lending only consolidates property ownership in the hands of older and wealthier people.

You were warned that would be the case as well. And you cheered on the mortgage famine anyway.

You can't lambast the banks for lending too much and then lambast them for not lending enough.

Well, quite.

The problem being, the banks weren't on the whole lending too much in the UK to residential mortgage borrowers for owner occupation.

It was their commercial and overseas lending which got them in trouble.

Now they are lending far less than they should, in the areas of activity that were never the problem..... And a generation of young people locked out of ownership is the consequence.

Still, as I say, you have vociferously supported the mortgage famine for years, despite being warned it would only prevent millions from buying houses, so I have no idea whats up with these crocodile tears from you now.

CLAPTON

carslet wrote: »

The obvious thing is that house prices are too high, but this is the case in most of the world not just UK,

I don't think anything can be done about it or will get done about it. I worry about the future generations,

well, it very easy really


we just have to build more houses

carslet

CLAPTON wrote: »

well, it very easy really


we just have to build more houses

I agree, but we have known this for years, but will it get done ? sadly i don't think so

CLAPTON

carslet wrote: »

I agree, but we have known this for years, but will it get done ? sadly i don't think so

more houses are being built as we speak


but it up to people to support new housing where they live if we are to make up for the years of underbuilding

ess0two

Odd thread?


Seems quite a few here are buying,and no anecdotes either!


https://forums.moneysavingexpert.com/discussion/5022050

the_flying_pig

ess0two wrote: »

Odd thread?


Seems quite a few here are buying,and no anecdotes either!


https://forums.moneysavingexpert.com/discussion/5022050

Err, thanks for that....

ess0two

the_flying_pig wrote: »

Err, thanks for that....

My pleasure,always nice to see another side to things.

Graham_Devon

HAMISH_MCTAVISH wrote: »

Now they are lending far less than they should

What "should" they lend?

HAMISH_MCTAVISH

Graham_Devon wrote: »

What "should" they lend?

More than they are now.

Despite the slight uptick in 2014, the mortgage famine continues.