Never going to buy a house

[Juiceey]

Just that, really. I feel really sad about it.

Me and OH are in our mid thirties and forties and know it's realistically never going to happen for us. We live in Herts and pay a whopping £1500 a month for rent (for a 2 bed house >not envy) and simply can't afford to save for a deposit as well. On top of that we're in an expensive town anyway, a 2 bed house to buy is at least 400k.

It's sad, considering we both earn good money, to know we're in this position. I'm trying to stay positive about it- we're SUPER lucky after years of bad luck (moving every year thanks to landlords selling etc) to be in a secure lovely let- our house is owned by a charity, they will never sell or evict us, and is about 10 times nicer than anything we could ever dream of buying. It's just small but at least we can decorate as we wish and feel really happy here.

(We really can't move away somewhere cheaper. DC are at school, we live smack in the middle of both of our workplaces, I have a grandparent who relies on me etc, not to mention endless friends and family. We couldn't/wouldn't want to live away from our people)

So how do I get over the sadness?

I completely understand how you feel. I've been in your situation, we moved in with my DF with our two small DC's and saved really hard for a deposit, we had to move further out from London but stayed within Herts to find a home we could afford.
We did move the DC's school but actually with hindsight the area where we moved to is far nicer, safer and greener than where we were.
It's not easy, but it's not impossible, my DH was in his mid/late 40's and I was in my 30's and we now own our own home.
Anyway, what I'm trying to say is, think creatively, make sacrifices, could you stay with your grandparent while you save?
Good luck OP - don't give up on the dream

I know how you feel. A 3 bed semi in the worst part of our town is £300k. 10% deposit is 30k and that’s if you can find a mortgage that accepts 10%deposit at the moment. Plus £5-10k for land tax (we are in wales) and solicitors fees and surveys and moving costs etc.
Even if we stopped sky and Netflix that’s only £1000 a year saved. We don’t have daily coffees or even weekly or monthly!! We don’t have the latest phones, we have camping holidays, went abroad last year but drove and stayed in a eurocamp so no luxury holidays to cut down on. Even if we managed to save 2k a month on cutting down on stuff that’s still 20 years to a save the 40k we would need! We have 3 kids so need a 3 bed minimum.
I wish banks would offer 100% mortgages to people who have been paying rent for 15+ years without a missed payment. We know we can afford the monthly mortgage payment. It’s the deposit that’s stopping people like us from buying.

It's completely impossible - my dh earns 6 figures, we are very frugal and save a lot and still couldn't buy without a big chunk from my parents. Awful thing is now we own, it's much easier to move to something bigger as we are building equity and our mortgage is much less than rent in the area. It makes me furious that it's so hard to buy without help now, even on good salaries

Unfortunately you are the new normal. Even with so called affordable housing (which is only 20% cheaper than the local average) very few people will be able to afford to buy. We are called generation rent for a reason.
With the average house price being more than 10x the average household income and house prices rising faster than incomes it's only going to get worse

@BrieAndChilli are you in Cowbridge?

You're not alone. Many working professionals are even priced out of the private rental market depending on where you live.

Disgraceful IMO.

@Northernsoullover no but am South Wales!

Why not buy some land and wack up a pre-made timber framed house.There is a Scottish company that makes them they are supposed to last 200 years plus..land, house assembly could cost less than £150,000.

How do you plan to fund that level of rent in retirement? That would terrify me!

You’re choosing to stay with what you know, you could make different choices. If you are happy that the choice is the best one then there should be no sadness really as every other available option is worse.

I live in an expensive area and am saving to buy. I am single plus no kids so just me at the moment. My issue is the mortgage as they will typically lend you 4-4.5 times your salary. Being on my own this means I need to put down a fairly high deposit. I've been saving for years (probably about 5 years now) I scrimp and save any spare penny and work as much as I can. It has felt never ending but I hope to be in a position next year. It may feel impossible but just saving a small amount each month is worth it in the long run.

It’s so bad and I feel for you. Two people working full time should be able to afford a home. I pray there is a big over haul of the housing market

Instead of looking in the short term, look long term. Where do you want to be in 10 years time? Even putting away £100 each a month over 10 years would be 24k. You could buy a house. This may seem ridiculous but I would rather that than stay renting to retirement.

I think people think buying a house is impossible and those that buy are lucky, but many people aren't lucky, i don't have family inheritance or loaded parents. I've just worked as many hours as possible and saved hard. I also live my life and try to do holidays etc.. too! (Often UK and cheaper ones)

Its so shit, op. I'm sorry.
(Your rented house sounds lovely though!)
Tbh next year the arse will fall out of the housing market so never say never.

I honestly don't know how people with normal wages manage down south without parental or other help, I can only imagine they get saving from a very young age, we had children at 22 and couldn't buy until 29 and that was in a cheap area. Have you looked at shared ownership or help to buy? Although your rental does sound more secure than most.

I deliberately chose to move to a cheaper location because of this issue. But that was just after graduation and pre job and ties, so it was simpler to do. I really feel for you OP and everyone else in this situation.

@Yetiyoga

Instead of looking in the short term, look long term. Where do you want to be in 10 years time? Even putting away £100 each a month over 10 years would be 24k. You could buy a house. This may seem ridiculous but I would rather that than stay renting to retirement.

I think people think buying a house is impossible and those that buy are lucky, but many people aren't lucky, i don't have family inheritance or loaded parents. I've just worked as many hours as possible and saved hard. I also live my life and try to do holidays etc.. too! (Often UK and cheaper ones)

Would it not be 12,000?

@Yetiyoga

Instead of looking in the short term, look long term. Where do you want to be in 10 years time? Even putting away £100 each a month over 10 years would be 24k. You could buy a house. This may seem ridiculous but I would rather that than stay renting to retirement.

I think people think buying a house is impossible and those that buy are lucky, but many people aren't lucky, i don't have family inheritance or loaded parents. I've just worked as many hours as possible and saved hard. I also live my life and try to do holidays etc.. too! (Often UK and cheaper ones)

Oh I see, didn't see the 'each'

OP the main benefit of buying a house is pension reasons, before that (other than the perception that it's "dead" money, which its not) renting over owning doesn't matter that much

When your kids are older could you relocate somewhere cheaper and buy then? You still have time. If you genuinely think you will never own a home, make sure you have a good pension!

How much do you earn OP? I'm surprised that you can't stretch to 400k if you're both working and earn good money? I do agree though that it is really hard and that house prices are ridiculous, particularly in the south east.

@MovingtoCardiff why are you surprised ?
Average wage approx £30,000, times that by 2. £60,000, with no other monthly commitments most a bank will lend is 4.5 times income = £270,000, where will they find the rest?

Not in the UK but I'm in exactly the same position as you and it sucks! I can work anywhere, but DH needs to be in our very expensive area and the children are settled and happy here. I'm saving as much as I can in any case as I don't want to rent when I'm retired...
At least you have a secure rental, my landlord is nearly 90 and when he goes I don't know what will happen to us

@mywifeandkids1 because the OP said they earn good money 🤷‍♀️ I guess it depends on your definition of that!

OP how much do you both earn??

I agree though. Getting on the ladder without help is nigh on impossible. It's the sheer size of the deposit needed. Who on earth can save £40k?? That would take me literally about 10 years and I earn £60k plus although in my defence am a single parent.

Something will have to give sometime. We have a whole generation who own all the houses and the next generation who don't get a look in. It's not fair.

@MovingtoCardiff I’d say £60,000 between them is a good income.