Will more people rent?

[muddyday]

Browsing on rightmove with a cuppa earlier just to be nosey, as a house on my street has gone up for sale and I always like to snoop look at peoples style…

A very small 2 bed house (I would say 1.5 beds, really) has gone up for £200k. If you can put ten percent deposit down, that still makes repayments £1200 a month. If your combined household income is £4800, your mortgage on a tiny home is still 25% of your total income which I’d never feel comfortable with.

Not to mention the obvious - 4800 total household income after tax is well above the median, and is the equivalent of two people earning 45k each. If it takes a household income of 90k to afford a 200k property, and still your repayments are a quarter of your income overall then how will folk afford that? Thinking especially of graduates, those with young children who have to weather reduced income due to maternity or childcare, those with chronic illness who can only work part time.

Maybe I am missing something or I’m out of touch. Are more people going to rent forever and will that become normal?

Renting is just hell on earth. I got given notice after six months for having a cat which I had in writing that I had permission to have. But I got caught by the freeholders or leaseholders. Whatever they’re called Who overruled, the landlords decision, and next thing, I know I am out on my ear. I know I could’ve fought it, but I didn’t have the mental energy. That cost me nearly £1500 to Move, in addition to all the other incidental costs.
Within three months of moving there, the people downstairs basically opened what could only be described as an animal sanctuary. Including three big dogs, so I was absolutely terrified my cat would be used as bait if ever she got out.

I would literally go on bread and water before I would rent again

The monthly rental cost is often just as much as, if not more than, the mortgage for an equivalent property now. The bugger is saving enough for the deposit.

Yes, especially for those already renting

Bank of mum and dad is the problem especially when COVID grants were handed out to people with no need for them, I know several people who gave them the dc for house deposits.
The other issue is clamping down on landlords to the point where they are selling up, less rentals=rent increases and less money to save for a deposit.
We're also at the point where some first time buyers are inheriting from wealthy boomer grandparents.

Yes. I think lots of people are relying on help aren’t they

More and more landlords are selling up, so there is less rental houses “stock” on the market resulting in higher rent prices. It’s a bad cycle.

It’s awful that other landlords take advantage of this situation when they probably know full well what they’re doing!

I’ve read articles saying that in areas where competition is fierce, tenants are offering more than the advertised rent or 12-months rent in advance, in order to secure properties. Not sure where that money comes from, family perhaps.
https://www.bbc.co.uk/news/business-66246223.amp

It’s similar to a tight buying market. We almost lost out on our current. home when someone else offered significantly more than the asking price (we’d offered a little over it). Luckily the sellers picked us.

Buying in our area would mean about a 40k deposit,not sure how young people even in high earning jobs can save that amount. There is a limit where parents can help out .

Exactly!

Inheritance (gp's) - I can't see any other way mine will get on the property ladder.

It's been a shock for DD1, finished uni and expected to move with with bf. Not happening despite both having jobs as they don't have deposits / savings (yet).

I currently rent and have done forever
Am early 40s. Earn a very average income (around £27k) Unable to increase income due to health issues (its a professional job but I can't work full time) Had been looking to buy with DP who earns about the same, unfortunately we have now split up so I'm trying to buy, something, anything I guess on my own. I've lived in the same house for 10 years and the rent has barely increased and so is (just) manageable on my own but there's no guarantees that the landlord might want me out at any point and I simply couldn't afford anything else and have pets so have no choice, but it means moving away from an area I've lived in for 25 years to somewhere where I know nobody at the lowest point in my life, it's such a miserable and anxiety inducing situation, and yet I'm lucky as I do have a deposit so can probably do it but yeah not the housing situation I would ever want to be in.

Rental property is no better. Landlord friend says he's letting houses within a couple of days of advertising and is inundated. My parents rent out a house but they've had the same tenant for years and they've reluctantly put the rent up but only to cover costs.

Combinations of parents savings, grandparents and living at home rent free for a few years post uni. That's in the realms of what we expect to give DS without what any partner is given. Reality it's 20k for parents to save over 20+ years so around £75 a month if you save 0-22.

Thing is not everyone can afford to save or save for uni & deposit. Plus not everyone has the space or income to support adult dc & logistically it's not always possible.

I had 6 fig help to get on the ladder simply because I'm a Londoner.

One good thing about renting is housing benefit

And it also depends where you are in the country. My rent isn't too bad

What on earth is good about it ? It doesn’t cover the majority of peoples rents. Half the landlords won’t accept it. And it could be changed in a heartbeat by the government policies and then you’d be out on your ear.

Yeah that’s the problem isn’t it, I always see adverts on Facebook which says no DSS

I guess it’s a privilege to be able to do that though. For people to offer that kind of help most would have to choose just one child. Nothing wrong with that choice but if everyone makes it, population’s going to dwindle surely

I’m sorry that’s your situation. It’s crap. 27k is a good wage. You should at least be able to afford to buy on that