Does the State Pension increase every year?

zagfles

eastcorkram said:

Often puzzled by the fact that apparently I'm to blame for the fact that houses were cheap, well, relatively cheap. I bought my first house in 1982 , a one bedroom so called starter home. It was £21,500. I borrowed £18,500. 
 It didn't feel cheap at the time. 
When I went to view it, what should I have done? Offer £27,995?
I had no influence on the price of houses. Then or anytime since. 

Collectively, we do have influence on the price of houses. For instance, if a political party were to propose policies that led to stable house prices, would you be more or less likely to vote for that party. If a political party were to propose policies that led to house prices rising, would you be more or less likely to vote for that party.

The trouble is that for some reason, policies that tend to lead to rising house prices have proved popular, therefore political parties pursue them, rather than policies that tend to stabilise house prices.

SouthCoastBoy

Definitely think it is far more difficult for the under 40s to get on the housing ladder. Cost of housing in my area is a ridiculous multiple compared to average wages. I do feel very sorry for them and personally would be quite comfortable for houses to drop 50%. Both labour and conservatives have had policies that fuelled house price increases over the last 30 years

sevenhills

zagfles said:

Collectively, we do have influence on the price of houses. For instance, if a political party were to propose policies that led to stable house prices, would you be more or less likely to vote for that party.

People vote for parties that object to housing developments close to where they live, so they vote against house building, which means fewer houses built and higher prices.

zagfles

sevenhills said:

zagfles said:

Collectively, we do have influence on the price of houses. For instance, if a political party were to propose policies that led to stable house prices, would you be more or less likely to vote for that party.

People vote for parties that object to housing developments close to where they live, so they vote against house building, which means fewer houses built and higher prices.

Local planning decisions won't impact the national vote, local maybe. And as discussed loads of times here, rising prices aren't a supply problem, supply has increased faster than the population, it's a demand problem, with some of that demand being fed by the investment potential rather housing need.

Nebulous2

eastcorkram said:

Often puzzled by the fact that apparently I'm to blame for the fact that houses were cheap, well, relatively cheap. I bought my first house in 1982 , a one bedroom so called starter home. It was £21,500. I borrowed £18,500. 
 It didn't feel cheap at the time. 
When I went to view it, what should I have done? Offer £27,995?
I had no influence on the price of houses. Then or anytime since. 

You weren't to blame for getting a cheap house, I wasn't to blame for getting a cheap flat in 1984. Equally, individual members of our generation aren't entirely to blame for having taken more out of the system than we put in over the years. 

However neither are the younger people to blame for not being able to afford the same houses that we could, at the same age and in the same occupations. 

Where members of our generation are very much to blame is in getting opportunities to climb the greasy pole and then pulling up the ladder after us (to mix my metaphors) It's bordering on criminal that a generation which received not only free education, but a grant to live on while they studied, decided to charge their own children tuition fees and gave them loans to fund inflated rent in student accommodation.  

zagfles

Nebulous2 said:

eastcorkram said:

Often puzzled by the fact that apparently I'm to blame for the fact that houses were cheap, well, relatively cheap. I bought my first house in 1982 , a one bedroom so called starter home. It was £21,500. I borrowed £18,500. 
 It didn't feel cheap at the time. 
When I went to view it, what should I have done? Offer £27,995?
I had no influence on the price of houses. Then or anytime since. 

You weren't to blame for getting a cheap house, I wasn't to blame for getting a cheap flat in 1984. Equally, individual members of our generation aren't entirely to blame for having taken more out of the system than we put in over the years. 

However neither are the younger people to blame for not being able to afford the same houses that we could, at the same age and in the same occupations. 

Where members of our generation are very much to blame is in getting opportunities to climb the greasy pole and then pulling up the ladder after us (to mix my metaphors) It's bordering on criminal that a generation which received not only free education, but a grant to live on while they studied, decided to charge their own children tuition fees and gave them loans to fund inflated rent in student accommodation.  

There's virtually no difference in reality. The so-called "loans" students get now are really a grant-!!!!!!-graduate tax. When I got my first job after graduating in the 80's I paid 29% tax. Now graduates pay 20% tax plus 9% student loan repayment, and on higher (real terms) thresholds.

Housing is the big financial issue facing younger people. Not student "debt".

Silvertabby

Nebulous2 said:

eastcorkram said:

Often puzzled by the fact that apparently I'm to blame for the fact that houses were cheap, well, relatively cheap. I bought my first house in 1982 , a one bedroom so called starter home. It was £21,500. I borrowed £18,500. 
 It didn't feel cheap at the time. 
When I went to view it, what should I have done? Offer £27,995?
I had no influence on the price of houses. Then or anytime since. 

You weren't to blame for getting a cheap house, I wasn't to blame for getting a cheap flat in 1984. Equally, individual members of our generation aren't entirely to blame for having taken more out of the system than we put in over the years. 

However neither are the younger people to blame for not being able to afford the same houses that we could, at the same age and in the same occupations. 

Where members of our generation are very much to blame is in getting opportunities to climb the greasy pole and then pulling up the ladder after us (to mix my metaphors) It's bordering on criminal that a generation which received not only free education, but a grant to live on while they studied, decided to charge their own children tuition fees and gave them loans to fund inflated rent in student accommodation.  

University education may have been 'free' but barely 12% of my generation actually benefitted from it.  In the case of my class, only the GP's daughter went on to do her O/A levels and then university.  The rest of us had to leave school at 15 in order to get jobs and bring money into the house.  

It was Tony Blair's New Labour who introduced university fees, as part of his drive to get at least 50% of children into university and so off the unemployment statistics.  Even he knew that the taxpaying voters would baulk at the idea of paying for this extra flood of uni entrants!

I was brought up in what would today be termed abject poverty.  Outside loo, no central heating, no hot water on tap.  Our summer holiday was a day trip to Blackpool or the Lake District, and our telephone was in a red box in the next road.  Tea on Thursday night (before dad got paid) would be something like jam butties - and my sister and I would be told to be grateful as 'poor' children would only have bread and dripping.  But we clearly weren't officially poor, as we didn't qualify for free school meals.  Cue more jam butties.

Time has moved on, and I would hate to think that children today could be living in those conditions were it not for our current welfare system.  But I certainly don't feel guilty about Mr S and my very comfortable retirement, which is mostly down to our combined 50+ years of service in the Armed Forces.  

Nebulous2

zagfles said:

Nebulous2 said:

eastcorkram said:

Often puzzled by the fact that apparently I'm to blame for the fact that houses were cheap, well, relatively cheap. I bought my first house in 1982 , a one bedroom so called starter home. It was £21,500. I borrowed £18,500. 
 It didn't feel cheap at the time. 
When I went to view it, what should I have done? Offer £27,995?
I had no influence on the price of houses. Then or anytime since. 

You weren't to blame for getting a cheap house, I wasn't to blame for getting a cheap flat in 1984. Equally, individual members of our generation aren't entirely to blame for having taken more out of the system than we put in over the years. 

However neither are the younger people to blame for not being able to afford the same houses that we could, at the same age and in the same occupations. 

Where members of our generation are very much to blame is in getting opportunities to climb the greasy pole and then pulling up the ladder after us (to mix my metaphors) It's bordering on criminal that a generation which received not only free education, but a grant to live on while they studied, decided to charge their own children tuition fees and gave them loans to fund inflated rent in student accommodation.  

There's virtually no difference in reality. The so-called "loans" students get now are really a grant-!!!!!!-graduate tax. When I got my first job after graduating in the 80's I paid 29% tax. Now graduates pay 20% tax plus 9% student loan repayment, and on higher (real terms) thresholds.

Housing is the big financial issue facing younger people. Not student "debt".

You paid 29% tax, as did everyone else.  Graduates are paying more than everyone else. They are also, generally, paying more for inferior pensions. My daughters were in pretty grotty university accommodation, one of them sharing a flat with seven others, which cost more simply for the roof and utilities, than the £7200 at the time maximum loan. That was before they begun to feed and clothe themselves. 

Housing is definitely the biggest issue - but it is a cumulative effect, paying our pensions, paying their pension, repaying their loan all contribute to the difficulty in buying houses. 

Nebulous2

Silvertabby said:

Nebulous2 said:

eastcorkram said:

Often puzzled by the fact that apparently I'm to blame for the fact that houses were cheap, well, relatively cheap. I bought my first house in 1982 , a one bedroom so called starter home. It was £21,500. I borrowed £18,500. 
 It didn't feel cheap at the time. 
When I went to view it, what should I have done? Offer £27,995?
I had no influence on the price of houses. Then or anytime since. 

You weren't to blame for getting a cheap house, I wasn't to blame for getting a cheap flat in 1984. Equally, individual members of our generation aren't entirely to blame for having taken more out of the system than we put in over the years. 

However neither are the younger people to blame for not being able to afford the same houses that we could, at the same age and in the same occupations. 

Where members of our generation are very much to blame is in getting opportunities to climb the greasy pole and then pulling up the ladder after us (to mix my metaphors) It's bordering on criminal that a generation which received not only free education, but a grant to live on while they studied, decided to charge their own children tuition fees and gave them loans to fund inflated rent in student accommodation.  

University education may have been 'free' but barely 12% of my generation actually benefitted from it.  In the case of my class, only the GP's daughter went on to do her O/A levels and then university.  The rest of us had to leave school at 15 in order to get jobs and bring money into the house.  

It was Tony Blair's New Labour who introduced university fees, as part of his drive to get at least 50% of children into university and so off the unemployment statistics.  Even he knew that the taxpaying voters would baulk at the idea of paying for this extra flood of uni entrants!

I was brought up in what would today be termed abject poverty.  Outside loo, no central heating, no hot water on tap.  Our summer holiday was a day trip to Blackpool or the Lake District, and our telephone was in a red box in the next road.  Tea on Thursday night (before dad got paid) would be something like jam butties - and my sister and I would be told to be grateful as 'poor' children would only have bread and dripping.  But we clearly weren't officially poor, as we didn't qualify for free school meals.  Cue more jam butties.

Time has moved on, and I would hate to think that children today could be living in those conditions were it not for our current welfare system.  But I certainly don't feel guilty about Mr S and my very comfortable retirement, which is mostly down to our combined 50+ years of service in the Armed Forces.  

I'm not asking you to feel guilty. I don't know your attitude towards younger people. I'm simply saying that my (our?) generation needs to recognise that younger people are not the architect of their own misfortunes. They have been dealt a fairly poor hand. My generation had an expanding middle class, which provided opportunities for lots of us to get out of the poverty you describe. Nowadays the middle is being squeezed, meaning everyone can't aspire to the opportunities we had. In fact the children of many middle class people are dropping into the gig economy, or landing up in minimum wage jobs. 

zagfles

Nebulous2 said:

zagfles said:

Nebulous2 said:

eastcorkram said:

Often puzzled by the fact that apparently I'm to blame for the fact that houses were cheap, well, relatively cheap. I bought my first house in 1982 , a one bedroom so called starter home. It was £21,500. I borrowed £18,500. 
 It didn't feel cheap at the time. 
When I went to view it, what should I have done? Offer £27,995?
I had no influence on the price of houses. Then or anytime since. 

You weren't to blame for getting a cheap house, I wasn't to blame for getting a cheap flat in 1984. Equally, individual members of our generation aren't entirely to blame for having taken more out of the system than we put in over the years. 

However neither are the younger people to blame for not being able to afford the same houses that we could, at the same age and in the same occupations. 

Where members of our generation are very much to blame is in getting opportunities to climb the greasy pole and then pulling up the ladder after us (to mix my metaphors) It's bordering on criminal that a generation which received not only free education, but a grant to live on while they studied, decided to charge their own children tuition fees and gave them loans to fund inflated rent in student accommodation.  

There's virtually no difference in reality. The so-called "loans" students get now are really a grant-!!!!!!-graduate tax. When I got my first job after graduating in the 80's I paid 29% tax. Now graduates pay 20% tax plus 9% student loan repayment, and on higher (real terms) thresholds.

Housing is the big financial issue facing younger people. Not student "debt".

You paid 29% tax, as did everyone else.  Graduates are paying more than everyone else. They are also, generally, paying more for inferior pensions. My daughters were in pretty grotty university accommodation, one of them sharing a flat with seven others, which cost more simply for the roof and utilities, than the £7200 at the time maximum loan. That was before they begun to feed and clothe themselves. 

Housing is definitely the biggest issue - but it is a cumulative effect, paying our pensions, paying their pension, repaying their loan all contribute to the difficulty in buying houses. 

My kids are in much better accomodation than I ever was. It is far more expensive now, I paid £15 a week, about £50 in today's money, now it's typically double to triple that, though the high end is stuff like en-suite and studios, unheard of in my day! Off campus is cheaper in most areas. Ours manage perfectly well on the equivalent of the full loan ie around £9k a year for all their living costs.

Anyway we had a very long and interesting discussion about inter-generational finance here: https://forums.moneysavingexpert.com/discussion/6219830/deflation-inflation-hyper-inflation-interest-rates-questions/p1

including stuff about uni, pensions, housing etc. I doubt there's much else to add...