How will the next generation buy?

robinsonad86

RelievedSheff said:

For there to be a house price crash there has to be some major upset in the economy that forces house prices down. This means economic misery for most people. Are you really suggesting this would be a good thing?

Despite what people think there are large swathes of the country away from the south east where housing really is very affordable for first time buyers and for people moving up the property ladder.

I work with most of the major house builders in my line of work. There is no way that we can currently build 200-300k homes a year in this country. The local authorities and water authorities are just not geared up to get the highways and drainage approvals through on that scale. It just couldn't happen as things currently stand and without major investment these figures for house building are just pie in the sky figures.

So you’re saying instead of establishing a fair and affordable housing market people should move to an area of the country they have no knowledge of, away from friends, family and loved ones, leave jobs possibly even have to learn new skills just to get a toe on the ladder?

Lets just remember in 2015 the Tory
government promised us 200,000 “starter” homes a year and haven’t built a single one

Vasquez65

I was horrified at the thought of my daughter having a £250k mortgage but then I realised that is less than 3x her and partner’s income,  our mortgage was orginally 5x  our income 20 years ago and was almost 6% interest, fixed for 5 years whilst we watched rates plummet 🙄

strawb_shortcake

robinsonad86 said:

RelievedSheff said:

For there to be a house price crash there has to be some major upset in the economy that forces house prices down. This means economic misery for most people. Are you really suggesting this would be a good thing?

Despite what people think there are large swathes of the country away from the south east where housing really is very affordable for first time buyers and for people moving up the property ladder.

I work with most of the major house builders in my line of work. There is no way that we can currently build 200-300k homes a year in this country. The local authorities and water authorities are just not geared up to get the highways and drainage approvals through on that scale. It just couldn't happen as things currently stand and without major investment these figures for house building are just pie in the sky figures.

So you’re saying instead of establishing a fair and affordable housing market people should move to an area of the country they have no knowledge of, away from friends, family and loved ones, leave jobs possibly even have to learn new skills just to get a toe on the ladder?

Lets just remember in 2015 the Tory
government promised us 200,000 “starter” homes a year and haven’t built a single one

Has there ever been a fair and affordable housing market? I don't think it's ever been the case that anyone who wants to buy can buy and now isn't any different. Just those that want to buy and can't buy have a voice in the media.
When they introduced 100%+ mortgages allowing people on the market that maybe couldn't really afford it hasn't ended well. 

Perhaps we need more of a push on social mobility than bringing house prices down? This will take time to filter through but probably better for the economy and people than a crash

MovingForwards

I don't see why some people expect to be able to buy where they live / work. Of course in a perfect world everyone would have a nice income, be able to afford the property they want but it doesn't work like that.

Not everyone has bank of family to help out and it does take time to save. Maybe starting with an emergency fund while living in the family home and this can be the basis for turning into saving for a home fund later on down the line.

I was priced out of the area I moved to when renting and instead of dwelling on it started researching other areas and counties. Searched vast counties by my maximum available price, whittled the areas down by commute costs, time and reliability. Then removed areas I wouldn't want to live in.

Admittedly I don't live 'near' my job or friends, but it doesn't mean I won't ever see them (when things are back to 'normal'). Even when living in the rentals I had to use public transport or drive, nothing has changed in that respect. I don't even earn anything near the 'average income'.

At one point I was working part-time, I still saved money each time I got paid. My priority and aim was to buy a home. That monthly coffee treat, that weekly bar of chocolate and other things all stopped. I made hair dye last by not using a whole box each time, I stopped having my haircut and just pinned it up each day, plus numerous other things; this all this adds up.

Admittedly the interest rate on my savings accounts from 2016 were slightly better than what they tend to be now, but that compound interest helped increase my savings, same as it helps now.

I didn't borrow the maximum I could, nor did I use any help to buy bonuses or equity loan. Instead I purchased a home which meets my needs. I may or may not climb the property ladder in the future and if I do, the savings I'm currently building up will go towards it, if I don't then my mortgage gets cleared even quicker than planned and early retirement becomes reality.

Linton

When the current more elderly generation of house owners die their houses will come up for sale.  They wont remain empty.  By the magic of the market you will find prices hovering around a value set such that there are just sufficient people who want to and can afford to buy as the number of houses available.  This is what happened in the past, is happening now and will continue to happen whilst there is a free market in housing and a limited number of houses.

If the next generation as a whole saves less houses will be cheaper. But you will still get about the same number of people complaining that life is unfair as they cant afford to buy.

Getting_greyer

Maybe decent affordable social housing with security of tenure, access to good provision of public services not dependant upon your postcode and decent social security in old age are more important than ownership?  Though that probably ingores the reality of the situation we live in currently.

mr_mf

It's all a game and we are being played by the system.  Force houses prices up, and collect loads of taxes along the way.  When you die collect a load of tax. Whenever the economy gets in a hole, what do we do ? Force a mini housing boom to increase the bubble a little bit further, because the UK is desperate for the income.  At some point the next generation are going to realise they are being played, and the 'dream' will come crashing down.
If I was a young person today I would be very angry at the last generation - we have screwed up house ownership, pensions, our future position in the world with Brexit - seriously what are we offering young people today !?!
Personally I think the UK needs a complete reset, we need to start caring about each other, and paying for what is important - increasing houses prices are not a good thing! 

sammyjammy

Getting_greyer said:

Maybe decent affordable social housing with security of tenure, access to good provision of public services not dependant upon your postcode and decent social security in old age are more important than ownership?  Though that probably ingores the reality of the situation we live in currently.

Trouble is as a society we want those things but we don't want to pay for them!

Bonniepurple

The only way we’ve been able to buy is through inheritances.  We’ve been ‘lucky’ in that the people who have died have been home owners.  

Re some of the points:
 - starter houses and flats - many people  nowadays have children before buying - and a one bed flat with 2 children is not ideal.  People tend to need the family homes first.

-Frivolous lifestyles - some people do what I would term ‘waste’ money, but then, I’m happy with an annual holiday in Wales (guaranteed rain, sun not so much!) and drive a 13 year old car.  Some might feel that my rather large (unexpected) bill for my car to get through its MOT is a frivolous expense as they get their cars serviced, with no need for an MOT, for a set monthly price.

- Social housing - proper, decent, social housing is desperately needed across the country, with government financial support to allow high standards in buildings and maintenance - but how many people on here (well, the Housing Board) say “there’s social housing near where I want to live - there will be problems”?  How many people think (even unconsciously) that they are more “entitled” to live with a nice view, or in a certain area, than others, simply because the own their houses, compared to those who rent them from a social housing provider?   How many would pay more taxes to allow local councils to provide more accommodation?

FWIW, my mortgage advisor was stunned that I don’t have a car loan.  The money that I have spent on them (buying and maintaining) could have been put towards a deposit had I gone for the PCP version.

Linton

mr_mf said:

It's all a game and we are being played by the system.  Force houses prices up, and collect loads of taxes along the way.  When you die collect a load of tax. Whenever the economy gets in a hole, what do we do ? Force a mini housing boom to increase the bubble a little bit further, because the UK is desperate for the income.  At some point the next generation are going to realise they are being played, and the 'dream' will come crashing down.

"The system" doesnt force prices up.  What forces prices up is there being sufficient people able to pay more to get the house they want. ie it's the buyers that force prices up.  If there weren't people who could afford to buy a house it would never sell.

Actually seen from that point of view one could say that the system is forcing prices up by giving special deals to new buyers so that they can compete.  If new buyers simply werent able to afford houses at current prices then prices would fall.  Houses aren't going to be left empty.