In work poverty due to overpriced housing costs

AG47

There is so much in work poverty now due to the discrepancy between wages and housing costs.

There can never be an end to help to bubble or other schemes until property comes down to meet wages or wages go up to meet property.

Either way there needs to be a correction or continue to inflate the bubble with housing benefits and schemes to help normal people who can’t afford overvalued property to somehow be able to afford it at inflated levels.

westernpromise

Property is by definition affordable at its current price. For property prices to fall, there would need to be a decline in demand for it at that price. Typically this requires either demographic change or a recession that reduces what people can afford pay.

Zero_Sum

London & SE problem.
Government can sort it by investment in north.
They chose not to, so Im past caring

MaxiRobriguez

westernpromise wrote: »

Property is by definition affordable at its current price. For property prices to fall, there would need to be a decline in demand for it at that price. Typically this requires either demographic change or a recession that reduces what people can afford pay.

Hardly affordable by price. More affordable by longer mortgage terms and record low interest rates.

If interest rates went up to 3% there would be a lot of people who suddenly realised the price they paid wasn't affordable.

lisyloo

AG47 wrote: »

There is so much in work poverty now due to the discrepancy between wages and housing costs.

There can never be an end to help to bubble or other schemes until property comes down to meet wages or wages go up to meet property.

Either way there needs to be a correction or continue to inflate the bubble with housing benefits and schemes to help normal people who can’t afford overvalued property to somehow be able to afford it at inflated levels.

No, there doesn’t have to be a correction simply because some people who want to buy can’t.
Expectations or entitlement are not what drives the market.

MaxiRobriguez

lisyloo wrote: »

No, there doesn’t have to be a correction simply because some people who want to buy can’t.
Expectations or entitlement are not what drives the market.

"Entitlement"

Spoken like someone who sounds like they're sitting quite cushty in a house they couldn't afford if they were buying it again today....

ska_lover

I know what you mean OP.

I think there is a lot of in-work poverty in everything - not just housing.

It seems to be the norm for young couples to stay living with parents whilst saving or get a pay out from Bank of Mum and Dad for the first deposit - and that is fantastic for them, however, not everyone is lucky enough to have any of these options

Not everyone has the opportunity to go to University, to Save, or to get handouts, or to extended stay at parents

Whatever your background, you are entitled to be housed - either rented or brought. Yes I used that buzz-word - entitled. Everyone is entitled to be housed

I am literally sick of hearing the word 'entitled' used incorrectly or overused. It has become the new snooze-worthy buzzword. Like 'Snowflake' or 'Random'

Life is a lot harder going down the generations - it was harder for me to get housed than my parents and it is harder for my adult kids to do same. Yes, each generation has it's hurdles, but in reality, there is less of everything to go round these days than there was ten, twenty, thirty years ago

Shoot me now.

lisyloo

MaxiRobriguez wrote: »

"Entitlement"

Spoken like someone who sounds like they're sitting quite cushty in a house they couldn't afford if they were buying it again today....

We could if we worked the same amount of years, paid off equity, advanced our careers, worked at our marriage the same - yes, but NONE of those things come without hard work, it’s not an entitlement, it’s something you earn and work towards.

Cushty? Not sure of your definition.
Is enjoying what you’ve earned cushty?

Just to clarify I was referring to the entitlement to own an asset, which is not automatic or a right.
I agree shelter is a basic human right.
I’d like to see more done for the genuinely homeless for sure.

MobileSaver

ska_lover wrote: »

Whatever your background, you are entitled to be housed - either rented or brought.

Um, no, you are only entitled to be housed if you are genuinely, legally homeless.

ska_lover wrote: »

Life is a lot harder going down the generations - it was harder for me to get housed than my parents and it is harder for my adult kids to do same.

Utter nonsense, the younger generation have never had it so good with instant communication to anyone anywhere in the world, the combined knowledge of the entire world available immediately at their fingertips for practically free, cheap (unbelievably cheap to their grandparents) travel to a whole swathe of countries around the globe and in relation to buying a house some of the cheapest mortgage deals ever recorded.

One of the problems is that the younger generation often aren't prepared to move to a less desirable area and also want a brand spanking new-build house with shiny, sparkly appliances unlike the doer-upper their grandparents bought with no double glazing, no central heating and second-hand ovens and washing machines.

westernpromise

ska_lover wrote: »

Life is a lot harder going down the generations

Direct taxes are a lot less than 30 years ago.

In 1985 the average wage was just under £7,000 and you lost 27% of that in tax and NI. Today it's about £29,000 (£2,000 more than just inflation) and you only lose 20%. If you have a student loan you'd pay 23% (in 1985 you lost 27% same as graduates even if you'd got there without a degree).

Other things have gone up, eg VAT and house prices, but other things have come down, eg phone bills, film rentals and mortgage rates. Some things cost about the same (a Golf GTi) but are far better.

bertiewhite

Talking to my Dad, it was much harder for him to get my parents first house - they lived with my grandparents for years and when he did get his first house, they couldn't afford to decorate it properly. In those days, they didn't have a phone, only one car in the family (a banger) & a rented tv. He wasn't in a bad job either so I fail to see how it's harder for today's generation.

I see a family member today moaning because they can't afford to buy when they've got a brand new car on the driveway, expensive mobile phone contracts, and go out drinking with a takeaway 2/3 times a week.