We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
Debate House Prices
In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non MoneySaving matters are no longer permitted. This includes wider debates about general house prices, the economy and politics. As a result, we have taken the decision to keep this board permanently closed, but it remains viewable for users who may find some useful information in it. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Young unable to buy as rents soar
HAMISH_MCTAVISH
Posts: 28,592 Forumite
http://www.telegraph.co.uk/finance/personalfinance/houseprices/10986110/Young-unable-to-buy-as-rent-outstrips-mortgage-payments-report-finds.htmlRenters are spending twice as much as owners on their housing costs.
Home owners spend 20pc of their earnings on their mortgage, whereas renters spent 40pc on rent.
This is despite renters tending to earn less. Nearly a third of private renters had an income of £700 a week or more, compared with 47pc of home owners.
The figures also showed that the average weekly mortgage payment was £187 a week for borrowers who had held their mortgage for less than five years.
Those who had borrowed for longer paid less, at £133 a week.
The figures also disclose high levels of dissatisfaction among renters about their living situation.
Just under half (48pc) of renters thought their tenure was not a good way to occupy a home, compared with 7pc of home owners
The mortgage rationing that has excluded most renters from buying, and dramatically worsened the housing shortage causing rents to soar, was cheered on by the usual suspects on here despite them being warned this would be the outcome.
“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”
0
Comments
-
HAMISH_MCTAVISH wrote: »http://www.telegraph.co.uk/finance/personalfinance/houseprices/10986110/Young-unable-to-buy-as-rent-outstrips-mortgage-payments-report-finds.html
The mortgage rationing that has excluded most renters from buying, and dramatically worsened the housing shortage causing rents to soar, was cheered on by the usual suspects on here despite them being warned this would be the outcome.
I think most people if asked a few years ago would have said 'Less risk taking by banks, please.'“I could see that, if not actually disgruntled, he was far from being gruntled.” - P.G. Wodehouse0 -
I think most people if asked a few years ago would have said 'Less risk taking by banks, please.'
Less risk taking on the overseas and commercial misadventures that got them in trouble perhaps....
But not less of the safe, prudent, and responsible lending that was on average the case with UK residential mortgage borrowers.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
What age are you Hamish, if you don't mind me asking?We’ve had to remove your signature. Please check the Forum Rules if you’re unsure why it’s been removed and, if still unsure, email forumteam@moneysavingexpert.com0
-
HAMISH_MCTAVISH wrote: »Less risk taking on the overseas and commercial misadventures that got them in trouble perhaps....
But not less of the safe, prudent, and responsible lending that was on average the case with UK residential mortgage borrowers.
Safe, prudent, and responsible lending against assets that were at record high prices, after the worst recession for generations, and a weak labour market it's not unreasonable that banks might be asking how safe it would be to lend to people.
It's easy to say in hindsight that the default rates on mortgages have been low, but the uncertainty at the time made long term lending unappealing.“I could see that, if not actually disgruntled, he was far from being gruntled.” - P.G. Wodehouse0 -
DaveTheMus wrote: »What age are you Hamish, if you don't mind me asking?
Generation X“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
We've just bought (23 and 24). The mortgage on our home is only £25 a month more than our rent was. We have moved from a "2" bedroom coach house (really more of a 1 bed as the 2nd bed is downstairs so we used it as a lounge) to a 3 bedroom 3 storey newbuild town house, which we love!
That being said, we've been saving for years, despite our age, so that we were able to get a deposit together!0 -
I bet this is heavily distorted by London, and in London the problem is not mortgage rationing, it is that prices are so far above rents.
I have rented in both Westminster and Pimlico in the last few years but there is no way I could have afforded the equivalent mortgages per month on said flats. At the moment it is verging on the absurd.Faith, hope, charity, these three; but the greatest of these is charity.0 -
Mortgage repayments are less than rents in London. I gained a bedroom and still paid less on the mortgage repayment than the rent.0
-
We’ve had to remove your signature. Please check the Forum Rules if you’re unsure why it’s been removed and, if still unsure, email forumteam@moneysavingexpert.com0
-
HAMISH_MCTAVISH wrote: »The mortgage rationing that has excluded most renters from buying, and dramatically worsened the housing shortage causing rents to soar, was cheered on by the usual suspects on here despite them being warned this would be the outcome.
Rents have risen 11% in the last 5 years.
This is below inflation, but above wage inflation.
I wouldn't call 11% "soaring". Especially when viewed next to how much house prices have increased in that same timeframe.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 352K Banking & Borrowing
- 253.5K Reduce Debt & Boost Income
- 454.2K Spending & Discounts
- 245K Work, Benefits & Business
- 600.6K Mortgages, Homes & Bills
- 177.4K Life & Family
- 258.8K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.6K Read-Only Boards