How much can house prices keep rising ?

zippygeorgeandben

Quite simply, I was born at the wrong time. I could go on about so many factors why I can't get on the property ladder but there's no point.

AFF8879

Speaking as someone who just bought their first home after 6 years of renting in London, I don't know why the political debate is so focused on house prices in terms of ownership. I think the reason we prize ownership so much is because renting, in most cases, is so terribly dire and depressing. Given population increases show no sign of slowing, I think focus on overhauling the rental market (long-term tenancies, regulated rent increases, abolishment of letting agency fees, increased punishments for landlords who provide unsafe/unihabitable properties) would be far more beneficial to most ordinary folk as opposed to forever chasing a moving goalpost with trying to increase ownership.

GreatApe

Income is not the only source of wealth. Something on the scale of £200 billion EACH year is given as gifts and inheritances mostly from old to young.

So its not just a case of income. I know people who have bought outright with inheritances or gifts and I know many more who have used gifts/inheritances as significant deposits.

Also your quoted £26k average wage is misleading as it includes part time workers. The full time average male wage is closer to £35k. One of the problems for most people is they simply don't apriciate that they are on low wages

AdrianC

zippygeorgeandben wrote: »

Quite simply, I was born at the wrong time. I could go on about so many factors why I can't get on the property ladder but there's no point.

Cobblers. I have friends in their mid 20s who own their house. No family money, no leg up. He works in a factory, she's at home with their small kid. Just ordinary people - who don't buy into consumerism, and are happy to have a small terraced house, which needs some work, in a not-great location.

Lloyd90

Probably one of the big issues, I am 26 and MANY young people I know buy a brand new car and are out drinking 3+ nights a week, eating out a lot of the time, all have the latest iphones, and off on holidays every year.

Maybe I'm just tight but I hate spending money lol, why spend £30+ EACH in restaurant when I can buy the ingredients for £10 for us both (me and the gf) and cook very well (I love cooking)

Philuk

AdrianC wrote: »

Cobblers. I have friends in their mid 20s who own their house. No family money, no leg up. He works in a factory, she's at home with their small kid. Just ordinary people - who don't buy into consumerism, and are happy to have a small terraced house, which needs some work, in a not-great location.

Not everyone want to leave behind the wall. In London or SE, ordinary people still have to pay for transport (3k+ per year in “London” for the flat you will be able to afford), childcare, as one salary will never cut it, is 1.2k per kids till they are 4-5. Yes, I know they sell houses in suburb Liverpool for a £1, but people cannot just leave family, friends and jobs just to afford a house.

AdrianC

Philuk wrote: »

Not everyone want to leave behind the wall.

What "wall"?

FWIW, they're on the southern edge of the second biggest city in the UK, in eminently reasonable commuter distance of London... As for "leaving family, friends and jobs" - they moved TO that area for work, both having grown up in different parts of the country, and bought the house once they'd settled in the area - having (fully commercially) rented that property for a year or two before buying it from their landlord for the full market value - around £100k.

But thanks for proving my point so eloquently.

Niv

People focussed on 'living for now' and having the latest gadgets will always find other reasons / people at fault rather than look closer to home for the real reason.


Not everyone will be in a position to buy (not that buying is be all and end all), but more people than are could be if they just stopped buying their £600 iphone every year and £1700 mac that they simply do not need. If they want it then fine but if they want a house more then they have to cut their cloth accordingly.

armchaireconomist

For the record, I bought my first house (alone) at 21 last year with no gifts or inheritance. It's a modest terrace house (was in quite a state), I spent 3 months every evening/weekend and with help from friends and I've added 20k value for about a 3k total spend.


Home ownership is entirely possible, the issue a lot of the time is my generation often "want everything for nothing". People are more than happy to turn their nose up an old, smaller house that needs work but can't afford a huge 3-bed double-garaged new build but that's somehow the government's fault.

movilogo

how long before people are totally priced out of the housing market

The "local" people are already priced out of the housing market.

What happens now is explained below.


Oil Sheikhs from Middle East, Russian Oligarchs, Neo-riches from China/India are buying properties in London and hiking the price up in London in turn.
The local Londoner could not compete with them so they are buying in Luton thus pricing out locals from there and hiking the price up.
Those who are in Luton are now buying in Northampton and thus pricing locals out and hiking the price up there.
Those who are in Northampton are ....

Well you get the idea.