Ownership amongst the young

GreatApe

Windofchange wrote: »

I don't even know where to begin. I post an article that shows that home ownership is falling off a cliff and Great Ape and his pal Economic see that as another cue to rant about immigrants and make up numbers. Look at the original article. Critique that.

Let's see if you can answer just the one question. Take the below link to the IFS.

https://www.ifs.org.uk/publications/8239

Take the statement:

"The wealthiest 1% of households hold about 20% of household wealth, the top 5% of hold approximately 40%, and the top 10% hold over 50% of wealth (see Table 1 of Alvaredo et al.). These authors also find that household wealth in the UK has become more concentrated since the turn of the century."

How have you got to the conclusion that all but 5% of the population are going to inherit a house!? Given that the top 10% of the population hold half the nations wealth, where do you get the idea that everyone is inheriting large sums of money?

You two just can't or won't grasp it will you? It's just the usual made up numbers and statements such as I know 100 families and only 5 of them won't inherit a house. It's just mind numbingly stupid.

once more its your lack of understanding about statistics.

Lets say I have kids who are in their early 20s and live away in their rented homes. Lets say I own 1 house and lets say my parents own 2 expensive houses have 2 pensions plus savings

You would cry that the top third have almost all of it the bottom two thirds have little to none in comparison and you would be correct. But of course your conclusion of unfairness would be fracking stupid.

That is why wealth looks so uneven, the upper generations hold it and that is normal and not evil.

If you looked at just one age bracket you would see a more even split and distribution. Also I am not all that worried by a few billionaires holding a lot of wealth. I am more concerned about the people in the 15-95% bracket and would ignore the top as its irrelevant. Also how much can you pre re distribute a £100 million flat in London. That person looks dam rich but its just 1 flat

So all the data does point to very significant numbers of uk born getting significant sums of inheritances and gifts. That you dont understand data and interpret it wrong leads you to conclude it is negligible

How can you think housing wealth can be so unevenly distributed when 75% of pensioners own?
I also think the social stock should be sold much cheaper to the sitting tenants which will push home ownership up further.

Life is good for the many (at least in economic terms, of course a lot of people have a lot of problems that money cant solve)

economic

Bag of Wind - i suggest you take your time and read the above carefully and try to really understand it. it seems you are not very bright so you do need time to understand it all before you post further.

thanks

Windofchange

So, to return to the point of this thread, if you are right and there is all this wealth, why is home ownership plummeting? Why are the younger generations unable or unwilling to buy a property? If their grandparents are providing all this wealth, where is the evidence that the young are benefitting from it, and where is the evidence that it is being invested in property?

I am not saying that inheritances don't play a part in property ownership. Of course they do. Why don't you actually critique the article I posted and make constructive comments around that as opposed to highjacking yet another thread with pots of gold and n = 1 examples from your privileged world?

Cakeguts

Windofchange wrote: »

So, to return to the point of this thread, if you are right and there is all this wealth, why is home ownership plummeting? Why are the younger generations unable or unwilling to buy a property? If their grandparents are providing all this wealth, where is the evidence that the young are benefitting from it, and where is the evidence that it is being invested in property?

I am not saying that inheritances don't play a part in property ownership. Of course they do. Why don't you actually critique the article I posted and make constructive comments around that as opposed to highjacking yet another thread with pots of gold and n = 1 examples from your privileged world?

I think what you mean is why are the young not interested in buying their homes? At which point I would say which young and define young?

Windofchange

Cakeguts wrote: »

I think what you mean is why are the young not interested in buying their homes? At which point I would say which young and define young?

As per the article - 25 to 34 years old.

economic

oh why wont anyone think of the poor young aged 25 to 34 who cant or wont buy a property because they spend it on iphones or coffees or night outs or the latest designer gear.

GreatApe

Windofchange wrote: »

As per the article - 25 to 34 years old.

We have imported a lot of 25-34 year old migrants who are 75% likely to rent privately

People are staring life later, leaving school age 21-22 rather than 15-16 and getting married later or not at all thus everything is delayed from home ownership to marriage.

People are more mobile, probably due to the fact that many more go to university often in another town so they are more likely to feel able to go apply for work all over the country. The internet has probably also played a part in this, how did someone 30 years ago know there was a job opening for x in a town they had never heard of or been to?

Also rentals are better quality so more are able and willing to rent longer I know renters who can buy but are happy in high quality HMOs

Less jobs for life so people move around more than in the past. If you got a job age 15 in the local pits or steel mill then you could be quite sure that was your lot and could buy age 25 having worked and saved for 10 years. If like myself you had half a dozen jobs in your 20s all in different towns then you are less likely to buy and need to rent

etc etc


That explains a lot more than your idea which is simply that house prices are too high. An idea which fails to explain why ownership has fallen in even the cheapest towns of the cheapest regions.

Chrysalis

you been locked in a closet for past 10 years?

look at house prices, even with low interest, homes are barely affordable for new buyers.

My dad brought our family home on his own income (mum not working) in 1970s for about a tenth of what he sold it for in 2001.

Home ownership is unusually high in the UK, in other EU countries where renters have more rights, renting has always been popular, but the UK is obsessed with home ownership, evidenced by the following.

1 - tons of home ownership type tv shows
2 - an apparent disaster if house prices drop
4 - politics always aimed at maintaining house prices
5 - rental laws favouring landlords

economic

Chrysalis wrote: »

you been locked in a closet for past 10 years?

look at house prices, even with low interest, homes are barely affordable for new buyers.

My dad brought our family home on his own income (mum not working) in 1970s for about a tenth of what he sold it for in 2001.

Home ownership is unusually high in the UK, in other EU countries where renters have more rights, renting has always been popular, but the UK is obsessed with home ownership, evidenced by the following.

1 - tons of home ownership type tv shows
2 - an apparent disaster if house prices drop
4 - politics always aimed at maintaining house prices
5 - rental laws favouring landlords

they are unaffordable in part of the country like london but only to those who dont earn enough and/or save enough and dont receieve gifts/inheritances.

i fail to see any housing crisis whatsoever.

GreatApe

Chrysalis wrote: »

you been locked in a closet for past 10 years?

look at house prices, even with low interest, homes are barely affordable for new buyers.

My dad brought our family home on his own income (mum not working) in 1970s for about a tenth of what he sold it for in 2001.

Home ownership is unusually high in the UK, in other EU countries where renters have more rights, renting has always been popular, but the UK is obsessed with home ownership, evidenced by the following.

1 - tons of home ownership type tv shows
2 - an apparent disaster if house prices drop
4 - politics always aimed at maintaining house prices
5 - rental laws favouring landlords

something like 1/3rd of all homes sold last year went to FTBs, about 1/3rd to second time buyers (moving a step up) and 1/3rd to other. That does not seem all that bad to me

Renting is high in other EU countries primarily because they have more single person households and properties suitable for single person households (Small apartments). The UK is something like <30% of households are single people one per house while Germany is >40%

People say German homes are cheaper to rent, sure but how cheap is it to rent a German house and pay household bills and taxes as a single person in Germany compared to a working couple renting in the uk? A quick calculation shows something like 8 million german homes are rented by single people, in the uk its less than 1.8 million single people renting a home to themselves.

Houses are cheaper to rent and buy in Germany but they have more houses so more costs to heat power and maintain them.