in wondering what this generation of enforced renters are going to do

[mustbetimeforacreamtea]

When they reach retirement and can't afford commercial rents on a pension? What happens then?

[babybat]

mijas99 - I've been living in rented accommodation since I moved out to go to uni. Living with my parents wasn't an option in terms of finding a job. My partner and I have both been saving for the last ten years, but even putting away the best part of £5k a year doesn't touch the sides when house prices are rising by £5k a month.

I'm not complaining - our rented place is nice, we're relatively financially secure, and I know that we'll eventually buy a place when we come to leave London. I'm just trying to give some context to why even when you're saving hard, you can still find it's not enough to buy a house in a rising market.

[Ratbagcatbag]

We had a 100% mortgage, the added another 25% on it. With northern rock, that said it was 11 years ago and we are in positive equity and hoping to be mortgage free in 9 years (before I'm 40). We had no help from parents but know for dss and dd to get on the property market they are going to need deposits from us so were saving for them now.

Dh parents put their house in trust over 15 years ago so even though dfil is now in a home and dmil is soon unfortunately to follow the house can't be touched for fees. As soon as we are mortgage free, I'm happy that we
Will do the same.

[Degustibusnonestdisputandem]

Like MrsWinnibago we will be moving to Oz in the next 3-4 years, as there is simply no way we can afford or even get a mortgage where our jobs are here...

[mijas99]

Babybat. Oh I know, I lived in London for 5 years. The prices were ridiculous then (2007) and even worse now. That is what of the reasons why we left - to Barcelona initially, although prices were crazy there too, but they have crashed over the past few years.

JohnnyBarthes - people are complaining that deposits are unfair/unaffordable, I was just saying that they are necessary

The only point I want to make is that if you think something costs too much, then don't buy it! That is the only way for prices to decrease i.e. a lack of buyers. And if you want to buy a cheap property in the UK then go and live in the North!

[Suzannewithaplan]

Currently they would be eligible for housing benefit. Housing benefits for under 25s have recently been cut, adult children are expected to live with parents until they are 25, or is it 35?

Perhaps pensioners will be expected to move in with their grown up children?

[specialsubject]

Some short memories here. rent did cost less than a mortgage about four years ago - I know because I was renting out a property and did the sums. But that was the market rent for the place.

then the interest rates crashed and mortgages got cheaper.

rent will probably cost less than a mortgage again soon.

[Suzannewithaplan]

The only point I want to make is that if you think something costs too much, then don't buy it!

Of course why didn't we think of that! Housing costs are scandalous, utilities costs far too much, so just do without!
live in a tent on common land, collect wood for fuel.

[MrsWinnibago]

Sarcy yes they rented! COUNCIL HOUSES! There were plenty then...there's none left now. They all got bloody sold!

Where I live on a large, very nice council estate, around 70% of them are owned by the residents! THe ones that aren't are flats...so all the young, low earners like myself...and DH with our family...we all live in the bloody flats!!

Crammed in like sardines.

I am NOT saying that the people who bought didn't have a right to own a home. I AM saying that right to buy was ill-thought out.

The three and two bed houses round here are all occupied by retired people with no DC at home. Our council had to change their rules regarding families living above ground floor. They never used to allow it because let's face it, small kids in flats doesn't go very well does it?

As it stands, we're pleased we got a flat at all but I do sometimes think if the houses had not all been sold then we'd probably be in one of those.

[JohnnyBarthes]

mij, the main reason we bought (with a massive long term loan from family for the deposit) was insecurity of tenure and huge rents. Improve the rental sector and the drive to buy a house weakens.

Nobody with the means to buy would put up with shoddy treatment by landlords and letting agents for long enough to make an impact on house prices.

Before I get bashed, not all landlords are crap - but sufficient numbers are, either through twattishness or because they can't really afford to be landlords, to make being a private tenant an undesirable position to be in.

[MrsWinnibago]

Special yes but we're not talking about 4 years ago are we? We're talking about now.

[Nomama]

Mijas has a point, though.

When I left home at 17 I rented a bedsit. Then I shared a house. For years I did this. Met DH and we shared a 3 bed house with another couple and a single man (he had the box room, bless him).

We saved enough for a deposit because we accepted less than perfect housing for 4 years. Almost all of the students I teach now (I am in FE) would not dream of renting a bedsit - I am not sure they even exist these days. Many of them don't want to think about renting at all after Uni. They think renting is a sign of failure - at 21!!!!

Then again they all seem to think that employers will fall over themselves to hire them... so they don't really have a good grasp of reality

[MrsWinnibago]

Johnny agreed. Our last landlord was lovely actually. He was great. But he had to sell...couldn';t be helped. My real issue is with the letting agents who take the mickey out of EVERYONE...landlords and tenants. The fees are crook-like!

I think someone needs to set up some kind of CoOP rental agency.

I don't have the time. It could work though...if landlords and tenants worked together. Deposits could be held safely, matches could be made...long term and short term alike. Ditch the bottom feeders and let them bloody make money elsewhere.

[meddie]

There needs to be better tenant rights. My DD is finding it impossible to save. In 19 months she is on her 3rd flat as the buy to let landlords decided to sell. Each time she gets hit with moving costs/deposit for new place/agency fees its a horrible trap. She has currently just got another 6 month contract, but there is no security at all. There needs to be longer tenancies.

[MrsWinnibago]

If there were no agent fees renters would be FAR better off. It's not so much the deposit...that must be given...but the fees are ridiculous.

[DogCalledRudis]

There will be WW3 or a revolution

[Degustibusnonestdisputandem]

When I first moved to the UK from Australia 7 years ago, I was shocked at all the fees for renting, and the fact that LLs can specify no children (VERY illegal in Oz)

[Degustibusnonestdisputandem]

Dog I wonder/think that also

[gettingridiculous]

I imagine that many renters may also be in debt. You can't save £50 a week over 5 years if you've got £30k of debts to service. Extensive debts can easily be wracked up especially with the cost of moving house regularly if you are living in the rented sector (3 times in 5 years for us) and the deposits are now standardly 6-8weeks rent as opposed to the 4 weeks it used to be. I don't know what we are going to do come retirement. Part of our debt problem is from giving our kids the best opportunities (music, sport lessons etc.) so that they can fare better than we did. Am hoping our kids can keep us in our dotage

[cestlavielife]

I could not afford to buy the flat I am renting in nice street nice area of London. it is not cheap but for the flat/street it is good value rent (has "old" decor) and I just could not buy it even with £100,000 deposit.

i need to sell joint owned flat which ex is living in, which is on interest only mortgage. to buy somewhere nearby eg ex council flat of similar size would require massive mortgage even with the equity form sale. if repayment would be costing much more than my rent. plus all maintenance costs.

there are many people in London on interest only mortgages - who bought in early 2000s = effectively they are long term renting the property from the bank and will have to move out and downsize from 2020/2030....they are fortunate they will have some equity there if prices remain relatively high.

[GilbertBlytheWouldGetIt]

Gettingridiculous - my point exactly!

[nilbyname]

I also think we will see a return of the workhouse.

Sad sad times.

DH and I have been fortunate, lucky and hardworking and the combination of theses things means we have nice things and our own home.

It's a disaster that so many people are unable to have the same, it's shameful really.

[MissBeans]

The majority of private renters who are eligible for housing benefit are not permitted to claim, due to strict stipulations laid out by mortgage brokers & insurers for btl properties.

[MrsWinnibago]

Is that true MissBeans you can't stop a tenant from claiming HB once they're in residence surely? What if one lost one's job!

[weatherall]

I am a renter and I am worried about this.

By the time I will be able to afford to but a family house my DCs will have moved out!

Just now I'm pinning my hopes on getting a council house after we're evicted in September. Then at least we will have security and a lower rent so we can save and buy again eventually.

[MrsWinnibago]

That's how we got ours Weather we were accepted onto the waiting list when we got our notice but we were not offered one until the day before we had to leave!

It was VERY hairy. We got a flat...even though we have two children...no houses here unless you've got four or more or need special adaptations.