Owning your home.

[Blue Mist]

Sounds like confirmation bias to support your own argument that young people don't prioritise correctly in order to achieve a house purchase. 3 stories of people you know doesn't quantify the issues new market entrants have currently.

People change their priorities based on how achievable they're goals are. If they feel that purchasing a house is unaffordable without sacrificing a big proportion of their living standards then that disposable income will go towards travelling, a new car or becoming a rock star.

UK house prices have rose at an extraordinary rate over the last 30 years whilst wage growth has been stagnant in comparison. Couple that with the increase in inflation on all key purchases and BOE base rates rising, getting a mortgage on a first home is tougher than ever.

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Not to me it doesn't. It says sensible post.

 

[PragueBlue]

When I compare what my parents had to do to buy their own house (work multiple jobs, 15-year old car, no holidays abroad, no TV etc), what I had to do (no holidays, no car, work overtime, no real social life, do without most common appliances initially) and what my son (aged 24 currently) is having to do now (no holidays, no nights out, 12-hour shifts) then it does seem that each of our generations has had to go through similar to get on the property ladder.

It certainly wasn't easy back then either, just as it isn't now. Not for my family anyway.

 

[Blue Mist]

When I compare what my parents had to do to buy their own house (work multiple jobs, 15-year old car, no holidays abroad, no TV etc), what I had to do (no holidays, no car, work overtime, no real social life, do without most common appliances initially) and what my son (aged 24 currently) is having to do now (no holidays, no nights out, 12-hour shifts) then it does seem that each of our generations has had to go through similar to get on the property ladder.

It certainly wasn't easy back then either, just as it isn't now. Not for my family anyway.

A house............


Luxury. I had to buy a shoe box for my family.



But I totally agree with you.

 

[Kompany Car]

Sounds like confirmation bias to support your own argument that young people don't prioritise correctly in order to achieve a house purchase. 3 stories of people you know doesn't quantify the issues new market entrants have currently.

People change their priorities based on how achievable they're goals are. If they feel that purchasing a house is unaffordable without sacrificing a big proportion of their living standards then that disposable income will go towards travelling, a new car or becoming a rock star.

UK house prices have rose at an extraordinary rate over the last 30 years whilst wage growth has been stagnant in comparison. Couple that with the increase in inflation on all key purchases and BOE base rates rising, getting a mortgage on a first home is tougher than ever.

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To be fair the House Price to earnings graph you have there includes London which massively skews the figures, there is a graph, also on that website which separates out London and the North.

So whilst property in the North is less affordable than back in the 80s, according to the graph above, houses are actually more affordable than they were in the early 2000s, at which time if my memory serves me correctly the BoE interest rate was around 6%.

That all said, as you rightly point out the levels of inflation we are now experiencing weren't there (noting that this is a recent, post covid issue) and job security is not as good.

 

[Tuearts right boot]

I've pondered this thread far too much this morning. I've come to the conclusion your attitude to this topic probably hinges on your priorities in life, how hard you're willing to work, and how much you're willing to compromise.

One of the people I know who thinks they're most hard done by because they can't afford to buy a house, has a full set of Turkey teeth, a brand new Mercedes on lease, just came back from 2.5 weeks in Dubai, dresses head to toe in designer gear, wears a Moncler jacket and lives in a studio apartment in town. They moan it's so unfair they can't afford to buy a place while living like a footballer.....

Another person in my circles dropped out of an apprenticeship to be a plumber, has spent nearly 10 years working in a supermarket, 'BMXing' in his spare time and spending loads of money on leasing mid-range German cars. Then he complains the market's escaped him and he simply can't afford to get on the ladder now.

One of my childhood friends has been going on about becoming a rockstar and being signed as an artist since his late teens. He's 40 in a few years and he's still not signed, still lives with his mum and dad (lucky guy) and has so much to say about how tHe NaStY tOrEeZ have scuppered his changes of ever owning a house. I'd argue his piss poor life choices have led to the scuppering, but I keep that to myself.

I find there's always someone else to blame, it's always someone else's fault with a lot of folk nowadays.

All the people I know who moan the loudest about how unfair it all is, are the ones who refuse to apply themselves and want to live like they're still teenagers. If you want to buy a house, you've got to accept the responsibilities that come with manoeuvring yourself into that position.

My squarest friends and associates who've just got their heads down and ground away are the ones who now own houses... they tend to do much less moaning about how unfair everything is too. Some of them have decent careers, others just grind things out and take an annual pay rise, living comfortably and not rocking the boat.

When I saved for a house I went through a steady stream of absolute shite cars bought for a couple of hundred quid a pop off Facebook or ebay, to tide me over. I was careful to choose small engines with low tax, and obviously good on fuel (Polos, Fabias, stuff like that.) No brand new German cars on lease or PCP for me (even now). I never really had a nice Boss or Ralph Lauren polo shirt or any branded clothes til I had bought somewhere.

I had to compromise on how I wanted to live for 2-3 years tops while I saved up. And even then, I still enjoyed the trappings of a liberal Western nation. I wasn't slumming it by walking five miles a day for fresh water, or not showering for 6 months on end, or foregoing healthcare. It just meant I had to shop in Primark and not Selfridges. I also managed to go out for the occasional meal, regular catch ups with mates - and at least one holiday a year, without going nuts on spends. So I hardly lived 2-3 years of misery, I just had to be a bit careful with my money.

I also had to compromise slightly on where I bought my first house, but it was fine in the end. Rome wasn't built in a day and when I moved 6 or so years later, I moved to my ideal location.

I think if you're willing to get your head down and accept no one owes you anything, and that you might have to cut back on things you want to buy or have for a relatively short period of your life, you can get on the housing ladder with few issues. If you've got parents who will let you live with them while you save, or parents who will help you out financially, then even better! I had neither and I still did it in my early 20's - which was not long ago at all.

Good post and very true for a lot...having said that it's not just nowadays, those people excisted when I was getting a foot on the ladder, all flash, no cash and everything on tick.

 

[Blue Maverick]

Maybe rent control is the answer? Charging someone nearly £1k for a 3 bed semi in oldham or £700 for a terrace is ridiculous, if landlords don’t like it sell the house. The changes to taxation always has loophole, the lad I know with 9 houses told me how he pays virtually no tax on any of them because of the system he can exploit. Take away those loopholes and then maybe that will help.

 

[I'm With Stupid]

Good post and very true for a lot...having said that it's not just nowadays, those people excisted when I was getting a foot on the ladder, all flash, no cash and everything on tick.

Yeah, a lot of unverifiable anecdotes flying around. "I saw a young person wearing designer sunglasses once, so that must be where all of their money is going and why they can't afford a house." Nobody is saying that it's not possible (except in London), just that it's way harder than it used to be. And also that it's entirely appropriate to discuss wider political solutions beyond 'just suck it up.'

 

[idahoblues]

Not to me it doesn't. It says sensible post.

A very sensible reply Musty old chap

 

[Mr Kobayashi]

Repurposing land and making it affordable is the biggest problem. You also have the environment question because it's a fact that the environment is being destroyed in the name of growth.

Basically people want cheap houses, no impact on the environment, lots of immigration, higher wages, etc etc....

These demands are completely incompatible with each other of course.

Got a spare room? Or a spacious garden?

Why not form a commune...

 

[Bill]

Then you should know full well that it’s not “takeaway coffee and avocado toast” preventing young people getting on the property ladder, it’s house prices outstripping pay and a lack of affordable property on the market.

We’re the same age. My mrs and I own two properties but we would’ve struggled without support from our parents.

How’s a 25 year old on 24 grand a year paying 800 quid a month rent with living costs being what they are supposed to save min 10% deposit for a 120k studio flat? It’s basically impossible.

i asked my daughter a bit back to save up to get on the property ladder . she quipped " why should I , i'll wait till you are dead and use yours ".

i wasn't even poorly at that point .