To wonder how the next generation will afford a house?

[Housepricewoes]

DH and I want to move to what will hopefully be our family home, in 2 years. Work commitments means we can't do it sooner but I'm stressing about how much house prices might rise in that time.

That got me thinking about how today's children will ever be able to buy a home.

I know it's a very British thing to aspire to home ownership but rightly or wrongly it is the norm.

Many of my friends and extended family have only been able to get on the property ladder with a significant hand out from the bank of mum and dad, but unless their circumstances drastically change, they are not going to be in a position to do the same for their children.

What do you think will happen about houses with the next generation?

[Housepricewoes]

Are you serious jasinemai?

Would you really want to live like students? Where would you all sit during the day/ evening?

[Creamycoolerwithcream]

I am 45 and had the same thought 10 or more years ago, lots people will find a way to buy. I never thought my DS and his friends would move out of the family home but once they got to about 22 they all started to rent places. I don't think people will live at home for ever. This is just my opinion.

[jasminemai]

Not many people are in all the time though are they? All 6 of you are likely working full time with different social lives and shifts. They do it in other countries, and plenty of people live like that in the uk.

[Apatite1]

It's a very big problem in London. We've decided not to have kids (bar some change of mind later) and the thought of our kids not being able to afford decent homes when they grew up was one of the factors. You may think that's extreme, but I have serious reservations about the kind of life the next generation will have to face. We are struggling as it is, despite having large salaries, house prices are beyond ridiculous now. Small 2 bed terrace in my area (which we are tied to due to jobs) costs £850,000. We would need to make payments of £3-4k per month, plus would need a huge deposit. We can manage it, but it's a big chunk of our monthly income and how on earth could people on average salaries pay this every month? It's simply impossible. And we couldn't do it at all if we had to pay for childcare on top.

Some people will be able to move away from London, but not everyone can, depending on their work. I am full of despair for the next generation, unless house prices take a tumble, or they have high six figure salaries, or they can get social housing, they are truly f**ked.

[lilypie13]

I worry about this too...

I don't think it's bs to want to get on the property ladder it makes perfect economical sense. When you give up work how will you continue to pay rent on top of everything else ? So it makes sense to pay off a mortgage and be able to leave something for your kids

[SpiderNugent]

Those who are motivated to do so, will find a way. Those who want everything given to them regardless of their life choices wont

simple

[MiniatureRailway]

I'm mid/late twenties and out of my group of friends the homeowners are those who had a leg up in the form of wealthy parents or inheritances or like me, married someone more well off. We are all graduates with decent paying jobs and don't live in a particularly welltodo area but it is eyewateringly expensive to buy now.

[IHaveAFifthSense]

I'm 22 and am yet to be out of full-time education. I have always worked through the summer and part-time when studying for my undergraduate degree, but I'm still not even close to being able to buy. Having a young child and living in London means that being able to afford to buy is not something that will happen any time soon.
I have grown up here and my whole life is here, so moving elsewhere will be a massive upheaval and I will probably be very isolated. It seems as if I either lose out or lose out!

[specialsubject]

usual lying anti-landlord crap here.

• you can set up a tenancy for as long as you like if both sides agree - 6 months is the minimum.
  
• if tenants continue to rent poorly maintained houses, more fool them. If the landlord doesn't fix things, give notice and go. Market forces.
  
• outside London rents are controlled by market forces. Too pricey and no-one lives there.
  
• UK tenants are protected. They cannot be evicted at will (Even if they refuse to pay any rent or trash the place). There are standards, laws, etc etc.
  
• the poster who said that the elderly relatives who own their place will never have to leave it and will have it to pass on to their children seems to be blissfully ignorant of the possibility disability, senility and the cost of care home fees.

[Creamycoolerwithcream]

IHaveAFifthSense, I lived, studied and had a baby in London but then moved out to buy. It wasn't a 'lose out' thing, turning the key in the door for the first time was worth moving away for.

[NoArmaniNoPunani]

Won't house prices have to drop if no one can afford to buy them?

[Housepricewoes]

sarinka- if the majority of Brits emigrated the problem would be solved but that's not going to happen. You might have opted out of the UK system but most people are going to have to find a way to live with it.

jasminemai no offence but I just don't believe there are many parents who are planning on living in student dig style set ups when their children are grown up. I understand some people live like that already but for those who don't - I really don't think they aspire to do so.

[Housepricewoes]

Won't house prices have to drop if no one can afford to buy them?

Not necessarily because people are prepared to stretch themselves to afford them and demand is outstripping supply at the moment.

[IHaveAFifthSense]

Creamy that must be a good feeling. Did you move very far from London? I worry about moving hours away, and the outskirts don't seem to be much cheaper.

[Lioninthesun]

I don't think rental gives you more freedom at all! The capital from a house is huge and you can do anything with it if you chose to.

[ballinacup]

Special

-regardless of how long the tenancy is, the landlord can give notice at any time.

• once someone is trapped in a shithole, it becomes impossible to get out. They need to find agency fees, a deposit and a month's rent up front, all whilst paying rent and bills on their current shithole.
  
• ultimately, within a few months, a LL can evict, regardless of the reason. A good tenant, that pays their rent may be evicted purely because the LL wants the house back to sell or for family reasons, which bank would call in a mortgaged property on a personal whim?
  
• it is a BAD thing for elderly people to not have a large asset. If they don't then future tax payers will be paying their housing benefit or care home fees.

[Creamycoolerwithcream]

About an hour away and then I did another move a bit further out but with a quick train service into London.

[BigChocFrenzy]

In the UK and the USA, renting seems to have a stigma that it doesn't in many EU countries. It's not just for financial reasons, it's also the god-awful snobbery and class issues.

Renting is very useful for those who change jobs a lot. Owning a house can restrict job options unless you are pretty well off.
Also, repairs, renovation and redecoration can cost a bomb.

I've lived in rented accommodation in Germany and I own a small rented flat there & in the UK, so I've experienced both sides.

Renting in Germany, I had:

1. a resident LL (downstairs flat) who kept sticking her nose in every week to see what I was doing.
   
2. a (multi-millionaire) LL with dozens of properties, notorious for avoiding repairs for months - radiators, bath in my case. Happens in any country.
   
3. Frankurt rents were like SE England
   
   Also, I saw some properties "for Germans only", buggered if I know how that was legal.
   
   What is great for renters is the greater security of tenure, which really should be brought to the UK.
   
   I am a responsible LL about repairs and I actually find it easier being an LL in Germany:
   . Tenants are responsible for regular redecoration and minor repairs. Also, they have to paint and paper before moving out. Saves the LL loads of time, not just money.
   . There is a registry with ID for all German residents, so even if a tenant skips and changes address a few times (happened to me once) they can't avoid the debt plus costs in the end.
   . LLs can sell properties with tenants to other LLs, no need for vacant possession

[ChazsBrilliantAttitude]

Special

The reality is that most landlords don't offer more than 6-12 months. It is very difficult to force a bad landlord to maintain and as a PP said there is a large financial hurdle to moving as you are unlikely to get you deposit back until after you've moved. If you add into the mix the number of landlords who won't or can't take HB then it's really not as simple as you suggest. I am a landlord and even I can see this!

[Objection]

If I get a job offer in Argentina tomorrow, I only have to worry about four weeks' rent to my landlord and tidying the place up a bit... and it's hola amigos (or whatever they say in Argentina)! Who wouldn't want such freedom?

If I get a job in Argentina tomorrow then I just need to advertise my house, let it out and I'll be covering my mortgage and have an asset to fall back on should I need to.
And when I retire I won't have to worry about paying to have roof over my head.

Suggesting that my house could get hit by an earthquake or replaced with a motorway is just hysterical. Home insurance will protect me from the former and should the government take my house they have to pay market rate for it - so ill come away with money in my pocket to find somewhere new.
Both scenarios apply if I were renting but I would be much worse off.

You seem to think that owning a home prevents you from doing so many things - it's just doesn't.

[Objection]

the poster who said that the elderly relatives who own their place will never have to leave it and will have it to pass on to their children seems to be blissfully ignorant of the possibility disability, senility and the cost of care home fees.
And how would they pay for that? By selling their house. Yes, the children don't benefit from inheritance but what would the elderly who only have rent do in that case?
Again, in the scenario you paint, the home owner would be better off than the renter.

[expatinscotland]

How many parents are going to be able to keep adult children whilst they save for an overpriced box.

What a way to live!

Far easier to prepare them to find a better country to live in.

[Creamycoolerwithcream]

Objection, the elderly person who is renting would get their care provided for free assuming they have less than about 14k in savings.

[TravellingToad]

well all the houses are going to have to be owned by somebody aren't they?