It's getting tough out there. Feeling the pinch?

jennystarpepper

euronorris said:

Yes, it is harder for FTB now. The income to house price ratio is much higher. In 1996, this ratio was 3. By 2020, it was closer to 7. This ratio is much higher in London. House prices have risen at much higher rates than the average income, sadly, and having other things available at a cheaper rate is no longer sufficient to plug the gap (it was for a while).

I did say ... (excluding London / or similar areas).  1996 is being quoted, changes happen every year, good and bad. My comments are not just about cheaper things.  

ladyholly

We got married in 1973 and rented a 2 bedroom cottage. At the time we lived in south Devon and even renting was hard. When we had our daughter we attempted to get a mortgage but were literally laughed out of the building society as our earnings were so poor. At the time we both worked for my father in law. and I think through shame on his part he gave us an interest free loan which we paid back as though it was a mortgage. We eventually got our first proper mortgage in 1985 when we moved to the town we still live in.

I think that some of the problems that younger people have now in buying are that the affordability rules are so strict and because expectations of having things are greater so saving for a deposit is harder. We were lucky in having a washing machine as my husbands grandmother boughtt it as a wedding present but if she hadnt we wouldnt have had one, our freezer was my MiLs old one and to start with we only had a couple of camping chairs to sit on. Times were different as are expectations.

euronorris

jennystarpepper said:

euronorris said:

Yes, it is harder for FTB now. The income to house price ratio is much higher. In 1996, this ratio was 3. By 2020, it was closer to 7. This ratio is much higher in London. House prices have risen at much higher rates than the average income, sadly, and having other things available at a cheaper rate is no longer sufficient to plug the gap (it was for a while).

I did say ... (excluding London / or similar areas).  1996 is being quoted, changes happen every year, good and bad. My comments are not just about cheaper things.  

Yes, and the ratios I quoted are the UK averages. The London ratios show a much greater gap between the average salary and the average house price. The facts are that buying a property is a pipe dream for a significant proportion of the population as they simply don't have the earnings to required to obtain a mortgage for a property.

Doom_and_Gloom

https://www-kentonline-co-uk.cdn.ampproject.org/v/s/www.kentonline.co.uk/kent/news/amp/houses-for-4-750-and-new-cars-for-500-266874/?amp_js_v=a6&amp_gsa=1&usqp=mq331AQIKAGwASCAAgM=#aoh=16521946977350&csi=0&referrer=https://www.google.com&amp_tf=From %1$s&ampshare=https://www.kentonline.co.uk/kent/news/houses-for-4-750-and-new-cars-for-500-266874/

That shows how and why people are struggling overall. It includes the problem with house prices. You have to look at the full picture. Yes FTB have a hard time and not buying a few small pay items isn't the answer no matter what some people think. Yes every £1 you can put down as a deposit helps lower the amount of mortgage you need to take out and maybe a better deal but the saving time vs house prises going up don't add up 😔. 

Even if my partner and I had full time rather good jobs (something we had planned before my disability reared its nasty head many years ago) we wouldn't be able to afford a mortgage for a small 2 bed place; what used to be known as a starter home to my parents generation.
We are still in the 'lucky' position to have savings and able to save a small amount per month but we priorities that as a buffer for when things get worse and they are coming by the look of it. I've always been told by my grandparents and parents that having such a buffer is essential so it will be prioritiesed until it is not possible to add to. 

tooldle

We bought our first place in 1996. In our part of the world house prices were still severely depressed in 1996. We paid 57995 for a 3 bed terrace in a student area. Average wage here was around 10K in 1996 and both OH and I were earning around 15K each. I had a graduate engineer position and OH a technical role in HE. I think our modest terrace was out of reach of those in 10K roles even then. Most of our neighbour were elderly and those that weren’t were students. But, these comparisons are all small area specific. By moving to the other side of the bay, property could be had for considerably less. Whilst I was happy to work in a steel works, i wouldn’t ever be keen to live alongside it. Some people love it. Horses for courses. Edited to add our mortgage started at 7.5% interest rate and went up a few times over the following few years. 

jennystarpepper

I didn't realise house prices were severely  depressed in 1996.  I'm lucky I bought mine on a single wage in 1999. 

tooldle

jennystarpepper said:

I didn't realise house prices were severely  depressed in 1996.  I'm lucky I bought mine on a single wage in 1999. 

I think it was area specific, some areas had recovered by 1996. I still live in the same city and it is possible to find properties at under 100k even now. Back in 1996 small terraced houses in decent family areas could be had for around 20K. Popular areas come and go. Everything changes overtime, including needs and expectations. If for example a young buyer feels parking to be something they cannot compromise on then a traditional welsh terrace is not going to appeal. Back in ‘96 I parked on the street without a problem as few neighbours had cars. The same area now is so crammed with cars, as landlords sold up and houses reverted back to family ownership. 

jennystarpepper

tooldle said:

jennystarpepper said:

I didn't realise house prices were severely  depressed in 1996.  I'm lucky I bought mine on a single wage in 1999. 

I think it was area specific, some areas had recovered by 1996. I still live in the same city and it is possible to find properties at under 100k even now. Back in 1996 small terraced houses in decent family areas could be had for around 20K. Popular areas come and go. Everything changes overtime, including needs and expectations. If for example a young buyer feels parking to be something they cannot compromise on then a traditional welsh terrace is not going to appeal. Back in ‘96 I parked on the street without a problem as few neighbours had cars. The same area now is so crammed with cars, as landlords sold up and houses reverted back to family ownership. 

I have no idea where anyone lives, I thought this was a '1996 in general' type comment. 

jennystarpepper

euronorris said:

jennystarpepper said:

euronorris said:

Yes, it is harder for FTB now. The income to house price ratio is much higher. In 1996, this ratio was 3. By 2020, it was closer to 7. This ratio is much higher in London. House prices have risen at much higher rates than the average income, sadly, and having other things available at a cheaper rate is no longer sufficient to plug the gap (it was for a while).

I did say ... (excluding London / or similar areas).  1996 is being quoted, changes happen every year, good and bad. My comments are not just about cheaper things.  

Yes, and the ratios I quoted are the UK averages. The London ratios show a much greater gap between the average salary and the average house price. The facts are that buying a property is a pipe dream for a significant proportion of the population as they simply don't have the earnings to required to obtain a mortgage for a property.

Again, I did say 'excluding London / or similar areas'  but you keep quoting this and I have acknowledged this as an area which is difficult!  You have used 1996 as one years example, one year does not reflect a 'whole' 

Floss

By 1996 house prices in most of the country had recovered from the crash & recession of 1993. Some areas took longer to recover.