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UK: generation renters

Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
Many young people enter adulthood without much hope of owning their own home now. The size of deposit required is beyond reach and hefty mortgage required an obstacle

People on low income fly the parents' nest by renting houseshare- then what about beyond their 30s. And rents are so high! The UK has a housing crisis after a property bubble

Comments

  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    Correction: London has a property bubble.

    The rest of the country is fine, with a stagnant property market.
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    It's wider than London. Brighton has suffered a crazy hike in prices over the last decade. I was looking at a flat the other day that sold for £49k ten years ago wich is now is up at nearly £250k. I think the South East suffers generally from stupid house prices with places like London and Brighton suffering worst.
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    Brighton's suffering from the same issue as London because it's basically a suburb of London. You see similar examples in Oxford and Cambridge, desirable areas for people who want to work in London but don't want to live there.
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    Yeah, come further up to the Midlands and you will find much better house prices. My wife and I bought a brand new semi-detached 3 storey house. Massive living room and kitchen, 2 double beds and bathroom on the first floor and the entire second floor is our bedroom with an ensuite. Throw in a decent size garden and a garage. Our view is fields.
    £160,000.


    Its all about the area, anything North of Cambridge and you're fine. Funnily enough, there are jobs up here as well.
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    What Whowhere said,

    I was speaking to one of my colleagues at work (sales manager) at one of my works branches and there is such a shortage of properties at present that people are buying anything. We've had houses sell for 20-30k over asking price just because people keep raising prices to buy it as there is nothing else.

    Sent from my HTC One using Tapatalk
  • **helen****helen** Mod malarkist Posts: 9,235 Listening Ear
    Some stats from the Land registry:
    London prices are up 18% last year to an average £458,000 (according to londonpropertywatch.co.uk, a two-bed in Clapham, South London now costs upwards of £500,000) Elsewhere in Manchester, prices are up 2.4% to an average 104,244 and in Birmingham prices are up 2.7% to £114,453. Overall, first-time buyers must now pay 10.5% more for property than they would have 12 months ago.

    In addition, Shelter recently calculated that if wages had kept pace with house price rises since 1997, the average salary would be £55,296. In reality, the average UK salary is less than half of this.

    :crazyeyes

    Things that can help that some of you might not have heard of are shared ownership and government's help to buy scheme. You can read about them in our 'Will I ever be able to buy a property' article.

    Great thread Kiwi. :thumb:
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    Buying a reasonable house as a single person on an average salary is very difficult, but it's not impossible. My brother in law earns less than I do, but he used the time at home with his parents to save up for a monster deposit. I think that is the best advice we should be giving people. Don't be in a rush to leave if you can avoid it, use that time to save up instead of pissing it up the wall.
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    Where I live a two bed house goes for £150k + and there's little chance of being able to afford that, I'm not entitled to right to buy on my council house and even if I moved to a cheaper area I'd not likely get much change from 135k
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    guess I'm lucky I live up north then
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    **helen** wrote: »
    Things that can help that some of you might not have heard of are shared ownership and government's help to buy scheme.

    It's depressing that these two things are the only things the Government are prepared to do about the housing crisis in London and the south east.

    Shared ownership gives you all of the hassle of renting, but none of the benefits.

    As for the "Help to Buy Votes" scheme, the only people benefitting are the 30-something professionals in the finance industry who have enough money stored away to buy anyway.

    In other news: I absolutely hate renting. Whenever anyone asks "why don't the British do long term renting", I'll cheerfully use my landlord as exhibit number one. It's been made abundantly clear that the flat I'm paying a fortune renting is her property, and not mine, so no I can't do rebellious things like put my paintings up on the wall.

    The sooner I can buy the better. Living and working in the south east, despite earning a fortune between the two of us, is going to take a while.
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    I think landlords need to stop giving so many restrictions on their tenants - in the past I've been told not to put up pictures, not to move furniture, no overnight visitors more than 1 night a week, no cooking of smelly food, no pets, no loud music, no more than 2 visitors at a time, no fun.

    Some of those things are reasonable but not all. They need to remember that they may own the building but it's your home!!

    Long term renting works in France and Spain why not here?
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    Miss_Riot wrote: »
    They need to remember that they may own the building but it's your home!!

    Long term renting works in France and Spain why not here?


    You just answered your own question. Ultimately, whatever protections you might have, you can still be evicted for absolutely no reason with notice. The only way anyone will ever get me out my house is either because I stop paying my mortgage or I'm in a casket.
    Given a choice, why would I want to rent?
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    I've never had these problems with my landlords, especially ny current land lady, we've been told, it's our home, we do what we wish as long as it's a high standard when we leave.

    We are looking at buying in the next few years. Especially with my new job it makes it possible but it may be tight, well get around 200k ish for a three bed,which tbh around here is a good price considering the next town over we would be looking at 50k plus on top of that

    Sent from my HTC One using Tapatalk
  • **helen****helen** Mod malarkist Posts: 9,235 Listening Ear
    It's depressing that these two things are the only things the Government are prepared to do about the housing crisis in London and the south east.

    Agreed! Totally empathise with landlord issues too.
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    I'm not sure that rent controls per se will work, but certainly regulation of letting agents and longer contracts- not based on assured shorthold tenancy legislation- should happen.

    The big problems are the lack of security, because after the initial term you can be evicted with two months notice, and for no reason at all. The initial term is often only six or twelve months, after which the rent can be revised. If you extend the protected period, and prevent landlords from increasing rent to sitting tenants by more than RPI, then this will solve many of the issues.

    As for letting agents, my view remains that agents are instructed by, and act for, landlords. Therefore landlords should be paying all their administration fees.
  • **helen****helen** Mod malarkist Posts: 9,235 Listening Ear
    Was struck by this indie articles on prediction for future generation and living with parents: http://www.independent.co.uk/news/uk/politics/half-of-young-adults-will-live-with-their-parents-within-a-generation-from-now-9308306.html
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    I get what the report is saying, but quadrupling of house prices to £900,000? I really can't see that happening. Its also an average, which I believe is skewed by exorbitant prices around London. Like I said before, come North. You will find a job and a house in a shitty area (but still nicer/safer/cleaner than London) for £65000.

    Sent from my Nexus 4 using Tapatalk
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    Having a quick look on right move I'd be able to pick up a 2 bedroom flat for £42,000.....not a great area but still better than London....

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  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    I'm in the SW and we still have the issue here, as does Riotbf in Brum. Even friends of mine in Sheffield and having issue. So I think it's a very place-centric issue. There are places in Cornwall that are very cheap, but the majority are extortionate, in my county everything is expensive unless you go towards the welsh border (i.e. Back of beyond) and in Brum, even in almost no go areas it's almost impossible to find something cheap. In small towns it's probably not such an issue but in any major city I think you could be hard pushed (unless it's Manchester or Liverpool).
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