So what happens when we're all old and we don't own our homes?

[user8665410]

Genuine question.

I'm a millennial with no hopes of ever buying a property despite earning a decent income.

There are many in my situation.

What happens when we're all in our 70s, 80s and 90s - which we will be because medical technology keeps letting us live longer - and no longer able to work. Where will we live? Who will support us? Will we just get kicked out of our homes we've been renting for (potentially) decades??

My current rent is £2,585.00, the State won't be supporting that I'm sure.

@cherrypieintheskyyyy my dad & in-laws get it which makes a big difference. My mum is a bit more annoying!

A shitty flat in a crap part of London doesn't make you "comfortable middle class."

The only reason people living in London can afford to pay London rents is because they earn London salaries.

Posters here seem to think there's some magical cheap suburb where you can buy a house for a song yet still be within commuting distance to London. In reality, most places that are affordable aren't within commuting distance, so there realistically isn't any way to live there and still work in London. Or the commute would be so intense it would destroy your physical and mental health.

Moving to a new area would in many cases mean having to find new jobs, which are certainly not going to pay anywhere near as well as a London job. That's assuming you can find a job in your specific career in your new area; moving might mean having to change careers completely, in which case you're looking at a very substantial pay cut.

In previous threads (I've seen this exact same argument play out on MN a million times) people were advocating moving to the rural NE and getting a job in a supermarket, just for the dubious privilege of owning a shit house. In real life people aren't going to give up their whole lives and careers and up sticks to a new place where they don't know anyone unless they have no other choice.

Forget about home ownership. It's not gonna happen.

Focus instead on building up a really good solid pension and savings.

There are lots of youtube videos explaining why renting and putting money towards a pension can easily equal the same amount of money as owning a house

If you can build up good pension and savings as your focus, then surely you can build up a home deposit? A home deposit tends to come from very good savings built up.

When I saw the thread title I assumed you must be old, but you're 40, max. Why are you still in the UK? I know emigration isn't easy, but look at other countries where your skills might be in demand and housing is cheaper. Staying in a country (and especially in a HCOL area) where tenants are unprotected and home ownership is out of reach is like lying down in the middle of a busy road waiting for a juggernaut to hit you. It's probably not too late to act.

Bingo

You have a very good point OP - I'm the same age as many 'boomers' (61 tomorrow, so the younger end) but chose not to step onto the simplistic A+B = C treadmill to make the most of the material accumulation that was easily available to me and my peers.

I preferred the also easily available alternatives to the 'treadmill' where you had a wealth of choices in life, many not prioritizing material accumulation but with an awareness that bills need to be paid, so easily earning enough to pay them as a sideline. Now, most people don't have that choice, unless they have money behind them or are prepared to live on the streets.

My DM was a materialistic boomer with just a few years of employment to earn a gold-plated pension etc and upon her death, my third share of her property gave me enough deposit to buy a property in the cheaper, less materialistic region, where I chose decades ago to live in.

I felt so pleased to hand back the keys to a Social Housing home that I'd fought for and waited so long to get - it was a great property, but my pleasure was in knowing that someone else would get the chance.

The only light at the end of the tunnel I can see for those younger than me is that finally the age for dying has finally peaked.

I have been banging on about this for ages, especially when I hear politicians talking about how people can use pensions and housing equity to pay for social care. I feel so sorry for everyone under 50 who has been battling with huge rents, house prices that rise far more quickly than wages, the most expensive child care in Europe, and student loans.

The only tiny tiny blue spot on the horizon is that the government brought in stakeholder pensions when they realised how many people were reaching retirement age who were reliant on pension credit. Housing benefit has been one of those unintended consequences policies as it has helped increase rents and encouraged buy to let, which in turn impacts on first time buyers especially. We need a massive overhaul of housing policy.

I'm assuming London.

You move further out. You can get a 2 bedroom flat on the edge of London for nearly half of your current rent. You might be able to buy if you can get a deposit together or get shared ownership.

Yes, you'll have commuter costs if you need to go into London to work but it would enable you to get your own property.

My mum and Dad were the first of their families to own their own homes. Mum recently sold their last house and is technically now a millionaire. HOWEVER her care home costs 6.5k a month and at 'only' 80 years old she could easily be there for another 15 years which will wipe that out. So no inheritance from her.

same with DH and I - on paper we are very well off. Big house, no mortgage, good pensions but 2 lots of care home fees and it will all be gone so D.C. can't rely on us for anything beyond the help we can give them now.

https://www.forbes.com/sites/markhall/2019/11/11/the-greatest-wealth-transfer-in-history-whats-happening-and-what-are-the-implications/?sh=24ae005d4090

I wonder if, now that people are living longer, it will become common to skip your kids and will the majority of your estate directly to grandchildren?

Not helpful to those who don’t have family with anything to leave, of course.

I don't think it's as straightforward as that. I'm 58 and there are 18 million more people in the UK now than there was in the year I was born so there is a shortage of houses for sale.

Exactly. I don't see why the Government and taxpayers should pick up the tab for people who haven't had the foresight to think ahead. Anyone who can pay over £2500 on rent is earning a good salary therefore in answer to a PP it is not the middle classes 'looking down' on low wage earners.

Where I live there is a lot of owner occupied, social rented and private rented sheltered type accommodation. It’s not particularly popular so only those with limited financial choices or care needs tend to move in. There are plenty of vacancies so I think people will have to move into quite small flats in places they might not want to live.

this!! i dont know why the brits can't do as the french. complaining on social media instead

You would get benefits but not that much as surely that's your choice to spend that ?

Why don't you live in the minimum cost housing and save ?

It is a worry what will happen to those priced out as the numbers involved are high. There will be issues

I can think of things for individuals such as saving a deposit for a house in a cheaper area than you are in, renting it out and then selling it on retirement to fund one of those over 55 schemes that are normally cheaper than the other properties to stay in your area, or move into it if you like the area. Or a holiday home on the same principle.

But this cant work on a society level.

why on earth would anyone pay £££ rent in London when they could move elsewhere and probably be able to buy with the same money.

Seriously?

I was born here and have never lived anywhere else. My family have lived here for generations. It's all I know.

I medically can't drive, and most places have shit public transport. Not being allowed to drive realistically restricts me to cities, and most cities are expensive.

If I moved I'd lost my whole entire support network which I hugely rely on. I have severe mental illness and physical disability, there's just physically no way I could rock up in some random strange town not knowing a soul and be able to survive totally alone with no friends and basically have to live in total isolation.

If I moved I'd have to break up with my partner who I love dearly, since I wouldn't want to have a long distance relationship. That means accepting a life of loneliness, since it's very unlikely these cheap villages are teaming with single eligible people my age just desperate to date an older disabled woman.

If I moved I'd have to say goodbye to my medical team and psychiatric team, and it's unlikely I'd be able to find as good medical and mental health care anywhere else.

If I left, I'd certainly have to abandon my entire career and start over from scratch in a brand new industry, and somehow find an entry level career that's suitable for an older disabled person that pays well. Not to mention the emotional distress of walking away from a very successful career I've spent decades building.

I don't have kids, but for people with kids, having to pull your children out of school, make them leave all their friends, and make them leave their grandparents is also a factor. Having to live without any family nearby is difficult, yet plenty of people do that either from choice or because they have no choice, but most people do prefer to live where they have a support network.

Finally!! I agree with @KenDodd.....

You don't think the children of the homeowners will get first dibs on those houses?

Pensions can't be accessed until you're 57 so no, you can't use that for a house deposit.

What do you consider a "good salary"?

Most people I know who pay average rent for a small flat in London zone 3-4 are earning around 40k-45k. Which yes is higher than the national average, but not exactly comfortable middle class territory. (And again this is London salary, you wouldn't earn that if you were living elsewhere.)

I live in a small flat in a shithole that's already a 45 min commute into London, not some palace in central. That's just what rents anywhere near London cost.

The irony is I have more than enough saved for a deposit, I just can't get a mortgage. I don't know why people are acting like you just snap your fingers and a mortgage falls into your lap.

This it makes me furious when people smugly announce they aren't having children for the good of the planet . That's great for the rainforests meanwhile millions of people suffer as a consequence.

You also mentioned building up signficant savings. That can.

It's possible some of those people are saying that to "save face" because they find it hard to admit that they can't see a way to afford children. I found it hard enough to afford children and own a home a decade ago so I imagine it is even tougher now