Will the next generation be able to buy their own house?

AG47

I'm more optimistic, yes I think children in school now will be able to buy average homes with average jobs.

Because the cycle will swing back the other way, we are now at the top of the housing cycle.

lisyloo

AG47 wrote: »

I'm more optimistic, yes I think children in school now will be able to buy average homes with average jobs.

Because the cycle will swing back the other way, we are now at the top of the housing cycle.

That’s not optimism.

We don’t get downturns without other significant economic effects (mainly bad) including sometimes people taking their own lives.
That is not optimism.

It’s unicorn thinking that the housing market can take a significant downturn without people, jobs and the economy being badly effected.

I’m not saying it can’t happen but that it’s not optimism.

triathlon

In short.. YES

And if they cannot find the money get a beter job or partner or both.

Or

Is your real question will I ever be in position to buy my own property

Cakeguts

You are assuming that the next generation will want to buy. The situation at the moment is that many young people who could afford to buy don't want to. They are of the generation where anything you want can be acquired instantly. They prefer to rent because the know what to budget for and can move very quickly if they want to. Spending months and months buying and selling property is not part of the instant lifestyle.



How much would you have to earn to buy this on shared ownership? https://www.rightmove.co.uk/property-for-sale/property-69417766.html


Or this https://www.rightmove.co.uk/property-for-sale/property-82611428.html


Or how about this one which is a big house? https://www.rightmove.co.uk/property-for-sale/property-72265687.html


As you can see this is a cheap area but you could live here and work in Manchester.

maisie_cat

People in society in entry level unskilled work have never been able to afford property, that only comes with the wage increases associated with gaining skills.
When I left school & left home I had to have 3 jobs so that I could pay my rent, 2 of them were what would now be minimum wage (£1 per hour). I couldn't afford to buy for quite a few years by which time I'd improved my skill set and therefore earning potential.
I have noticed that people who complain that they cannot afford to buy a home when they leave school tend to be in the same job as a school leaver, working in a supermarket at entry level is not a career.

lisyloo

Not everyone is or has been able to improve their skill level.
My MIL worked hard all her life from 14-72 and having left school at 14 never had a good level of education or the kind of employers who would have helped.
I’m not convinced everyone is capable but could be persuaded on that.
But certainly there hasn’t always been support available for people to improve themselves.
I think it’s probably easier now than it was in say the 40s but is everyone capable of taking the initiative?

I’m not arguing everyone should own, I don’t think that’s even a good model, just arguing that self improvement is not a panacea that’s widely available to everyone equally and if it was we’d all be battling for the better jobs and better houses so they’d still be distributed on some basis with the poorest (probably still around 30%) not owning.

spadoosh

It isnt that hard. There are places that are affordable for more or less everyone then there are places that are affordable for only an elite few.

Lets go few (lol oopps, shoudl be through) a number of examples.

Me: Minimum wage earner in a couple with some who earns about average income for the country. So total of £40kish. Live in the north west, a 3 bed house can be had for about £120k in an ok ish area. Life of relatiev luxury.

My mate: above average income but single. Lives in north west, 3 bed houses are about £120k but he has huge issues getting the disposable income to save a £12k deposit. Stuck in a 1 bed flat.

A new/trainee doctor in essex: Lets say about £43k per year. Average 3 bed semi price in the area is about £363k. If theyre single they aint getting that mortgage, in a couple the OH will need to be earning above national average in order to get close to affording a mortgage on it. In a worse house than me having worked at a role that is considerably more respectable in society than mine.

You can swap out doctor for any role that follows a national equal income so people like firefighters, police, teaching etc. But then its pretty much applicable to all jobs in the UK, you just dont see the huge disparities in wages based on area that you do in property. The result is a postcode lottery on property prices. IM just glad i was born to a family from the north west. Whilst im towards the poorer end of averages nationally, there not many things that arent affordable to me.

I suspect im better off in terms of having stuff and affordability than a considerable number of people who live further south than me yet earn a lot more.

lisyloo

You do not need a 3 bed semi when you start out in life.
You do not need an average house.

Your point about different areas is true.

spadoosh

And then youve got another friend (couple) which is the one im assuming youre all thinking of.

Works in public services on what is an national average wage, bought a new build house with HTB, stretching their affordability as far as they could. All new furniture from ikea on tick, then theres been the 4 maybe 5 cars theyve had since buying the house about 4/5 years ago. They have a number of holidays a year, nothing particularly lavish but abroad. Theyre doing well on the face of things but i know the debt mountain is climbing. Conversely one of their parents who did more or less exactly the same route theyve taken (public services, home ownership around the same age, children etc), managed to retire early, have an epic pension, a holiday home and new cars as and when they please whilst having no mortgage to pay off now. Ill be amazed and dumbstruck if my friends end up in the same situation as there wealthy parents.

spadoosh

lisyloo wrote: »

You do not need a 3 bed semi when you start out in life.
You do not need an average house.

Your point about different areas is true.

Sorry its a moneysaving site, i was going with the typically most value for your money property.

You can switch it out for 1 bed studios if you want....

Locally they are ~£110k and accoprding to rightmove in essex they are ~£220k.

Fact remains, i, an accounts clerk on minimum wage in the NW could afford a 3 bed semi as a first time house. A newish doctor in essex couldnt.