Owning your home.

[inbetween]

Totally agree but I’ve never seen so many flash cars driven by young people, go out on a Friday Saturday and see how much that costs for a night out, drop £100 a weekend on booze etc these are choices people make. Totally agree that houses prices are ridiculous but the law needs changing to stop people becoming landlords, I know someone who owns 9 houses, so that’s 9 people who can’t buy those houses, great for him and his investments but not for anyone else, capitalism at its finest, oh and he knows every loophole to not pay tax, I wonder who makes these rules and probably benefit from it as well!

Landlords buy houses to rent out and people rent houses because they need a place to live. If you legislate to make it harder for landlords to buy then who is going to buy the houses and with what money? Less available housing means prices rise.

The housing market might collapse in that scenario but that still won't suddenly mean that people can afford to buy what's left. Collapse also means that pension funds who invest tons in housing will effectively go bust so that's millions of people's pension down the pan and less houses will get built too.

Everyone buys in the knowledge that they'll be able to pass a house on as an asset. So in reality it's just ironic that people want housing prices to collapse so they can buy but then of course they want the housing market to bounce upwards from there so they have something worth a ton of money to sell on........

 

[Blue Mist]

Only skimread the thread but when a terraced house is deemed affordable at £150k the job is absolutely fucked.

Where is that ? In Burnley you can get one for 50k.
If perhaps couples didn't spend 30k on a wedding with owls flying the ring to the groom, they might actually be able to afford a deposit.
I got wed in Sale registry office and took the immediate family to to Queens pub across the road because that's all I could afford.
My stag do was in the now demolished pubs in Hulme, not 5 nights in Benidorm.
I had no money.

 

[Kompany Car]

Bit harsh that mate, I don’t think I could have lived at that age with my parents but it seems that could be the norm now, maybe building a granny flat if possible on your house would be cheaper. When I lived in Germany many houses had multiple generations living together, separate living accommodation but shared kitchen etc.

Its probably the only way forwards, having mortgages that pass between generations. Its been common in Japan for some time and also in Germany.
There is a problem with affordability at the bottom end of the market. If I look at the price that I bought my first house in the mid 90s, 45k and looking at its last sold price from Oct 2022 its gone up 5.22 times in price (now 235k). Yet my current home in that same period has only increased 4.35 times despite being in a much larger and in a more desirable area. Looking at other properties in similar locations in the North of England its a similar pattern with cheaper properties rising the most with smaller rises in the price of those valued over 150k back in the 90s.

 

[BlueMoonday]

I must admit, I nearly put my foot through the TV watching "homes under the hammer" where this nerd in his early 20s used his dad's money to purchase a buy to let property and then wanted charge £600 pcm A ROOM to tenants. The house was in a shit hole and rooms were tiny. The mark up was obscene.

 

[PragueBlue]

It doesn't help but it's not really just a UK problem either. It's the same in many other countries. I have friends in Italy and the Czech Republic and they have had to live with their parents into their 30s as they can't afford to buy. I would guess it's the same in most 'developed' countries.

 

[denislawsbackheel]

It’s been the norm in Italy for decades for single men to live at home.

 

[Corky]

There is a pile of research on this. (Google it). My figure is taken from research by Herriot Watt uni and is just about the lowest figure from all the sources. 300,000 per year for the next ten years is widely quoted and was the figure in the last Tory manifesto to be reached by 2025.
I don’t believe ghettos are inevitable.

200k was the target before that for a long time for all new homes, and it takes 3 years to build house minimum from identifying the land. Also the 300k won't be delivered, it is aspirational. PFE is asking for 15% social housing over the life of the plan for GM.

Academics look at Housing Waiting list figures without realising that half of the households are already in social housing, households are on the register multiple times and without resources waiting lists are not reviewed so the need is out of date. They also like to lump all affordable tenures in as one, and don't even know what social housing is sometimes, the way it is allocated, and how the building industry has limited capacity and limited land supply with the general public being anti any new developments, where as green belt needs releasing.

There are only a limited number of households available to move at one time, and when you do get oversupply of any social housing type it will actually adds to need to that area. There is a shortage of all house tenures and billions a year are thrown at the issue.

below taken from Guardian - I have worked in housing sector for 30 years and it is totally broken at every level in the UK - houses are no longer homes and a culture exists in the UK driven by banks, developers, politicians and media suggests you have failed in life if dont own a home....sheer greed and the obsession with ownership is at the heart of it.

In a forthcoming book, Shattered Nation, Oxford University’s Prof Danny Dorling points out that had house prices only risen in line with inflation over the past 70 years, the average home in 2022 would have cost £63,300, or just over twice the median full-time UK salary of about £31,000. Prof Dorling says money is siphoned from the less well off to the already wealthy when the former pay excessive rents, when they buy an overpriced house, and even when they keep up with their large mortgage payments. Lawmakers perhaps don’t see the problem as so many of them are landlords. Rishi Sunak’s family owns four luxury properties.

The problem is it costs 3 times that now to build an average house, on top of land, sales, legal costs, abnormals etc. Building cost inflation has been worse than most areas.

 

[Scottyboi]

I must admit, I nearly put my foot through the TV watching "homes under the hammer" where this nerd in his early 20s used his dad's money to purchase a buy to let property and then wanted charge £600 pcm A ROOM to tenants. The house was in a shit hole and rooms were tiny. The mark up was obscene.

The house I bought was an ex houseshare. The woman who bought it 15 years ago didn't change a thing and was charging 450 a month per room. Must have made a fortune.

 

[Kompany Car]

Hopefully more houses go on the market once the boomers die off.

They wont, we have a growing population due to people living longer and net positive migration from other parts of the world of around 200k people per year.

 

[Blue Mist]

I must admit, I nearly put my foot through the TV watching "homes under the hammer" where this nerd in his early 20s used his dad's money to purchase a buy to let property and then wanted charge £600 pcm A ROOM to tenants. The house was in a shit hole and rooms were tiny. The mark up was obscene.

I presume that was in London? And thats where it becomes political. I was nieve (sp) to believe Boris when he talked about levelling up. IF the government, any government, invested in infrastructure north of Watford, house prices would be more sensible. But they don't.