To wonder how people are going to actually buy houses?

[slatternlymother]

There's going to be a whole generation that can't, isn't there?

What about those people who rented due to circumstances/not knowing if they wanted to live there long term/work commitments etc, and then hit the wrong end of the financial crisis?

We rent, and have (luckily) really well paid jobs for our age. We are 25, and between running a car, putting DS through nursery, and just living, I doubt we'll have enough of a deposit to buy anything reasonable before we're 30. 28/29 at an absolute push. And that will be pressuring us to make a choice on where we're going to be living, but we won't be able to leave it much later because otherwise we'll be tied up in a mortgage forever.

But we are so, so lucky. Actually, it was blind luck that got us here.

And if we're struggling, how the hell is everyone else coping? Tbh, I'd happily rent all my life, but I worry about retirement age and no longer being able to pull in a decent wage.

AIBU to think that long term, more and more elderly people will have been in rented accommodation their whole lives, so when they do retire; they're going to have to fall back on the state, aren't they? To put them up in council accommodation?

Isn't this just a massive time bomb for the future?

Sorry for rambling thoughts, I just have been thinking about this quite a lot recently

mosman how do you know our window of opportunity to buy houses isn't right now even TODAY and interest rates are going to rise tomorrow or next year and never go back down to something manageable?!!!

No one can predict the future and at any one point in time no one knows if they are in the 'right window' to exploit something. I don't think back in 2002 that anyone expected what would happen with the housing market or the financial market. Good on anyone if they did.

'I'm not arguing against anyone/anything was merely suggesting how we overcame these issues.'

We? You live in Australia.

Only for the past 7 months Expat, i've been in the UK rather longer than that and as I also said the housing market is quite heated here too.

I don't think people really give 'the housing market' much thought before children and considering that is getting later for various reasons it is no wonder lots of people are in difficulties.

Yes, but you're in Australia and not planning to come back. Keep spraffing, though. It's amusing.

But that was the point in 2002 you didn't need to save at all, a 100% mortgage for three times your salary would buy you a 3 bed semi at 5.5%, where could you go wrong ?
Evidently some did and those are the ones you're a bit at when they bemoan house prices, they had their window and missed it.

What about those of us who were too young though? I didn't leave school until 2005. I joined the Navy, lived wisely, gained a good trade, saved my money and served my country in 2 conflicts. By the time I was back in the UK for long enough to consider settling down somewhere; too late. The financial crisis had hit.

That is (mainly) the generation that isn't going to be able to (or at least struggle to) get on the housing ladder. We are in our 20's, with no real way of getting on the housing ladder, no matter what we do. That is depressing; a whole generation facing never owning our own homes unless we do something drastic; like move countries

What is the situation with older people in rented houses Do they qualify for housing benefits?

And I know it was my choice to serve. And I don't regret it; best years of my life. But what were my other options? Go to Uni and be financially worse off by now/saddled by debt? Try my luck at getting a different job, perhaps in an independent company? None of these options would leave me better off.

In fact, the route I chose was probably the wisest financially, because I wasn't off renting for a long time (lived on establishments/on board), had a car but didn't really use it (loads of time away), cheap eating costs (see above) and we didn't go pissing it up every weekend. And drugs are banned in the Forces, so that wasn't an option

As a result, there was no debt, and a reasonable amount of savings (for someone on £18,000 - £21,000 per annum at the time).

noddy I'd like to know that as well.

A poster above seemed to suggest that her parents had been in receipt of it for their farmhouse. I'm sure they must be. You can't just throw a pair of 70 year olds onto the street.

Mosman, obviously all of the 35 year-olds trying to buy now are just not as clever as you and have all made shit life choices.

Incidentally, I can remember back in 2000 some people were talking about the 'housing bubble' and how 'it must burst sometime soon'. While other people were saying that you must get on 'the ladder' now otherwise it will be too late. But nobody knew which of those groups were right.

Yeah clearly.

I can remember the headline of the Express in 2002, average house price is now £100,000 and thinking to myself shit buy somewhere.
Everyone told me not to and I ignored them, thank goodness.

I'd just enquired as to how old my friends son is who was in the Navy, he's 27 just bought a house with his girlfriend in North Wales, had a baby last year they seem happy enough with their decision.

The Express also had headlines about Diana being on the moon with Elvis and a shopping trolley. The Express is fucking batshit.

Still, I'm sure as long as your friend's son is happy, there must be no housing crisis in the UK.

Its hard now.Im 28 and was so easy when I did it.The most I havr ever earnt is 17k and I have my own place down South.I bought my first place on my own at age 18 on a 12k wage.

Our second place we bought for over 100k and only earnt 16 k for dh and I was getting student loan and 60 a week in my part time job.

Well they weren't batshit about predicting the house price rises were they so maybe Dianna will turn up any day now with Elvis on her arm.

I'd just enquired as to how old my friends son is who was in the Navy, he's 27 just bought a house with his girlfriend in North Wales, had a baby last year they seem happy enough with their decision.

Good for him. I live in Cornwall. Where house prices are 3x the national average. Not only that, but there is no point in buying when we are moving about. Far better to sit tight, and not have to sell up and move in 6 months time.

Are you trying to sound as judgemental as you seem? Because you're coming off a little bit like that.

And also, the average house price according the BBC for North Wales is £155,000. In Cornwall, it is £284,937.

I'm not being funny, but a lot does depend on where you live. Posters have already come on saying that people should move and buy up north. But that's not awfully practical, if you don't work there, is it?

I'd be taking some beginning German lessons, slatternly. It's not that hard to learn, the people are good at helping, and well, I think I'd leave, because this whole thing isn't going to get better, it's going to get worse.

Hrm. I think I am fairly atypical. I am 29. Rented in London from 2006 to 2011 and wasn't able to save anything from rubbish salary. As I was solo and I was lucky enough to have parents living within 1.5 hour commute from London I asked my parents if I could live with them for a tiny monthly rent for a year and save for a deposit. So I did that and saved £1k a month until I had £12k.

As I was a first time buyer I was able to be part of the FirstBuy scheme - paid 5% deposit (£8,125), the house builder and the Greater London Authority put up the other 20% (interest-free to me for 5 years), so I have a 75% mortgage with a roughly 3% interest rate - about £650pcm excluding the ground rent and maintenance fees from the landowner.

I was staggered - STAGGERED - at the heft of the legal fees and tax I had to pay for the house purchase which meant that I only had about £700 out of my £12k left for furnishing. I signed up to my very first credit card and promptly spent about £1,200 on that (bed, washing machine, fridge, sofa, curtains, curtain poles, etc etc...)

Moved in last August. It's a 1-bed with a balcony in Zone 3 London. I love it to bits and it's heavenly to be able to do things like paint the doors a different colour on a whim. And the SPACE compared with what I'd get for that rent in London... I think I'm on to a winner here.

Dunno how the finance will work out in the future, but TBH I am happy here and quite content to ride out any ups and downs in prices. I'll see where the market is in 5 years.

What crosses my mind about it the most though - I have been pretty consistently unlucky in love, and the thought of waiting to buy somewhere in partnership with a boyfriend was just impossible. So I have MY house which is MINE and forever will be, and I won't have to worry about relying on a man for part of my financial security in the future

undertone that's actually a really interesting post, thankyou for contributing

I have to agree; I think you are fairly atypical in that you were a) on a good enough wage to save £1k a month (well done btw) b) able to live with your parents as they lived near to where you worked (well, ish! I'm sure a 1.5 hour commute must've been grinding) and c) you only required a 1 bed flat for the immediate future until you meet someone.

I think the last point is the clincher. The difference between a 1 and 2 bed flat is quite staggering, really.

But well done, btw

Yay! it feels awesome.

Maybe I'll stay here forever and be a crazy spinster in my 1-bed until I'm 85.

undertone there's worse things!! I suppose there's always a pay off. Maybe you're (as you put it) unlucky in love and have your gorgeous flat and can please yourself. I've been lucky in the family respect; job as well tbh, but have the misfortune to live in one of the most expensive places in Britain so we'll have to move.

Actually, fancy a swap? I'll come and live in your lovely flat and you can have DH (who hardly eats anything, honest) and my DS who never cries

No-body can easily predict the markets or we wouldnt all be in such a rubbish situation now.

It was entirely predictable, though not the details of timing and scale. Bloody banks lending too much to people, both here and even moreso in the US hence both house price inflation and the subprime market disaster of 'assets' which were worthless. Banks should never have lent such high salary multiples, and certainly not for 'buy to let'.

I know that the market is difficult but a lot of my friends who say they can't afford to buy haven't ever actually tried to save - they have expensive mobile phone contracts, go out every weekend, weekends & holidays away, sky TV, expensive clothes shoes, handbags etc.... Yet they moan that they cannot & will not ever be able to buy - they cannot see a correlation between making an effort & sacrifice now to see reward for their efforts later. I find it irritating as many often assume that I must have had help from my parents to own now , not that I worked bloody hard, saved every penny, went without, bought cheap house in a cheap area & did it up, had lodgers to pay the mortgage, sold it, and DH did the same & then we got our lovely house. It was bloody hard work and at times scary but nobody was going to hand it to me on a plate which is why I have a house and they don't. (we all have the same professional careers, and started off in the same city, although many of them have parents who up til now have paid for everything whereas I knew I was never gonna get some help)
I do appreciate that this isn't the case for everybody but I do believe the way that people view money/saving has changed and this has consequences.