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Share your dilemmas and get honest opinions from other Mumsnetters.

good news for homeowners as house prices increase again

270 replies

nettlewine · 29/04/2015 20:49

So the nationwide are reporting that house prices are up this month.

Seriously this isn't good news, even if you own a home as any step up becomes more expensive and even if you don't and have kids its no life to still be living stuck at home in your 20s and 30s!

The vast majority of homeowners in this country couldn't afford their home if they had to buy it now. The system is broken and its wreaking the whole country and the economy. London isn't a place for londners as they can't afford it and all new builds are sold off plan on Malaysia! Arrg every time I hear the thread title quoted I want to scream.

If only house prices were sensible and people could invest in something useful like producing stuff. I can't see this country as a good place for my children to grow up in.

OP posts:
Eltonjohnsflorist · 01/05/2015 12:36

Not if you have to buy a more expensive house for the next move chief?

Look, I think MN can be a bit London house obsessed at times, a image that is perpetuated by London based MN'ers themselves often, tbh.

London has always been expensive. There are lots of wealthy people in London- no, not the evil forriners but many old establishment families with London flats and country homes. They have always had, and will always have money. Wages don't matter.

Then there are people who earn a lot of money. As far as I am
Aware, hedge funds don't really base themselves outside of London. You'd be surprised how many people you would come across in London who work in these and similar highly paid jobs. They often stay in London and can obtain high mortgages ect.

Finally, more typically there are people who buy or rent flats but struggle up make the next step. It's extremely common, despite what Mn may let you believe, for couples to move out of London when they have children and commute back in. Many suburbs are only 20 mins on the train from London terminals- that's faster than most tube lines. It's not considered a hardship particularly, just something you do. In my experience the families who stay are:
A) well paid or independantly wealthy
B) bought their house 10+ years ago with high ltv and love London enough to put up with the financial strain
C) live in social housing or seriously compromise on the size of their home or location

Personally I find people IRL to be far more accepting of the unaffordability of London and expect it to be so. It really doesn't seem to be the big deal it is on here.

gypsygirlfromlondon · 01/05/2015 13:04

My DH is 10 years younger than me and we have 3 children. He has a good job in the city and I was an English teacher at a local school. I gave up after my second child and had all 3 very close together. I am 43 and rented for about 25 years? Renting is an absolute nightmare.

We lived in Bromley ( South Esat Greater London) and saved as much as we could but with the high rent and 3 children it has been very hard. My in laws have loaned us via a bank, 20K to get us on the housing ladder.

We have just bought ( In Feb ) a tiny, cramped 4 bed house in Kent. I have had to move my children from their school, completely uproot our lives and start again. The house need 20K of work doing to it- it's a horrible mess and hasnt been touched in 30 years by the elderly man who lived here before. I'm living with a cracked, dirty 1960's bathroom, filthy, small kitchen that I' m trying to clean and paint, terrible garden that needs landscaping, just endless work.

I'm alone in this new town where everyone knows each other already and we have moved to a cheaper area so the demographics of class and ambition are very different to what I'm used to.

I am extremely lucky to be able to have a home now but I have rented all my life so far and its so nice to get away from landlords. But I just don't know if it's worth it. The schools are not as good here, the London links are poorer. I have lived in London for years and my DH born and brought up there . He has a really good job and STILL we couldn't afford the area.

Rents in Bromley are £1,600 pcm for an ordinary 3 bed semi in an ok part of the borough. House prices are £500K minimum. I've left friends, my church, my comfort zone, my children have had to adapt and with my eldest in Yr 6 that has not been easy but we wanted to move before she started secondary.

Without that loan from my inlaws which we are paying back each month, we would be trapped in renting forever with a nightmare landlord who tried to evict us after 6 years with a Section 21 and then said we could only stay if we paid another £350 per month higher rent.

I wasn't financially settled at all when I had my 1st child, so it is partly my fault, I understand that. My DH was young and I was struggling at 31 in a bedsit. However, we have worked so hard over the last 10 years to get this property; my DH pays higher rate tax, I get lower CB, packed lunches for the kids as we cant afford school meals for 3, heating turned right down, very old car, I wear charity shop stuff and cheap flaschool shoes from Tesco!

It shouldn't be THIS difficult for hard working people to have a family home. I'm so grateful for everything I have but we have made huge sacrifices which has taken a huge strain on our marriage to say the least. Go knows how many times I have got divorced in the last 10 years.

I don't think we could ever afford to go back to London now even though my husband is a high earner. I can't work at the moment due to medical reasons and one salary is only just to cover all we need. No holiday for us this year, no extras etc. My DH's ticket to London is 6K a year and takes 1 1/2 hrs each way. That's how far we have had to move out to get a small family home and some security for my children. Maybe things will be better when I can return to work but high childcare costs and my health has prevented me so far .

I feel for everyone trapped in renting and can't get out. Sorry if I sound ungrateful. I'm indebted my inlaws -without them there would have been no way of us accessing a mortgage, our savings weren't enough. Its been a real struggle and even though I do like it where I am, it's a big upheveal. My family are all from London going back centuries and my DH's family were Irish immigrants to the East End. Hackney is now £400K for a flat!

The housing situation is truly unbelievable in this country. I honestly don't know how most people with young families of two or more children are coping unless you are already wealthy.

OrlandoWoolf · 01/05/2015 13:12

I suspect DS is going to do very well in the future.

He is the only grandchild in the family. DSIS will not as far as I understand be having children. So inheritance rise, mine goes to him, DFs will go downwards and DSIS - well, he'll be the only relative left (assuming little things like care home fees etc)

But I'm separated, So ex has a house. That will go to him.

It might be some years before this happens.

But I can't afford to move out of this flat. Single people struggle to rent let alone get a mortgage. Not everyone has the luxury of 2 incomes. I earn OK money but I only go this from the fact I am lucky to come from a rich family who paid 50% of the deposit.

gypsygirlfromlondon · 01/05/2015 13:13

Elton John- I agree. Bromley has huge amounts of 'old money',
established families with large homes. I know families that have lived there for years

and years. My nest door neighbour in Bickley lived there for 53 years and watched her house sky rocket in value. She sold it to a cash buyer last year for 550k who works in the city.

Those already there don't think the house prices are at all a big deal in London and have a lot of money to throw around. I couldn't keep up with the yummy mummy suburbia mentality of Bromley. They all assume you have lots of money too and in 15 years, I never admitted I rented my rather posh looking 1930's house that in reality was completely shambolic inside and never let anyone over for coffee because I was so embarrassed that place was so poorly decorated.

One lady I did let round was a doctor; she took one look at my magnolia walls, old radiators and falling down patio doors and ran for her life. I could tell she was uncomfortable even though her children adn mine were good friends.

It's taken as a given that you are rich in these boroughs.

ConnieBaby · 01/05/2015 13:57

But gypsy what you need is for your husband to be able to go his job in say, Leeds. That's what we should be aiming for; redistribution of labour not the London centric economy we have at the moment.

I'm not anti London. DH earns a 6 figure salary working in the city. He works for an investment bank but he's a lawyer. They have a smaller admin office in the NW and I really don't understand why DH couldn't workout if there but they have some bizarre policy that all executives need to be in The City even though as I said earlier, DH does most work via video conference.

gypsygirlfromlondon · 01/05/2015 14:17

Yes Connie, it would be fine for Leeds and I would be willing to move as I went to Newcastle Uni and loved it. My mum's family are Northumbrian and I would happily go.

But DH's job is based in London with an international firm who won't move up there. Yeah my DH does video confenencing a lot too.

I'm trapped in the South East! Arrrrr.......

IKnowIAmButWhatAreYou · 01/05/2015 14:18

Makes no difference to me - I bought the house to live in, not make a profit on.

Personally, I think we need a housing crash to reset things. Negative Equity doesn't mean a thing if you intend to live in your house & it'd give the next generation a chance to move out.

Renting is no better as the prices there are bloody ridiculous too...

ConnieBaby · 01/05/2015 14:28

Yes mine works for an American bank. It just frustrates me that DH doesn't need to be in a London yet they expect him to be there. Obviously the traders need to be there but a lot of the staff could be based in other parts of the country.

I live in Cheshire and DH works from home mon, stays in London tue to thur and then gets the train up and down in a day on fri (he leaves around 3)

gypsygirlfromlondon · 01/05/2015 14:28

My DH is high up in IT and there are very few companies that could offer him the competitive salary or promotional prospects that he has. He runs websites for International companies.

There just isn't the work further north sadly or even say in Devon or Bristol. Everything is London centric. He could do a normal IT job possibly say in Leeds or Birmingham but his job is quite specific and he has to be in London. The organisation he works for is huge multinational that owns half of Europe and won't go anywhere else except London.

What can be done? Sounds pathetic, but I just don't have any answers. I was a teacher and could go anywhere but now I'm cornered into Kent.

If we move, we loose all his prospects for future and understandably, he doesn't want to do that. Very difficult and we have little choice.

OrlandoWoolf · 01/05/2015 14:31

Negative Equity doesn't mean a thing if you intend to live in your house & it'd give the next generation a chance to move out

Yes..but if you need to remortgage and the value of your house has plummeted, you might not get a remortgage as you owe more than the house is worth.

So you are stuck with the bank's standard rate.

gypsygirlfromlondon · 01/05/2015 14:32

Goodness Connie, that sounds tough. I feel for you - that can't be easy at all for you or your family.

If it's any compensation, my DH leaves at 7am -back home 9pm approx. So I get full burden of kids he gets full burden of work.

Sending you Brewx

morethanpotatoprints · 01/05/2015 14:39

I'm a homeowner and pleased if the increase reported is actual.
So sorry for those who can't get on the property ladder though.
I'm not sure of the answer, apart from more affordable homes in the south.

If people are able to move further up north it is a bit better up here, but not always better.
My dc are doing ok with property but are buying projects to do up.
Once done up they are either selling or renting them out.
There are lots of youngsters doing this as jobs aren't as safe as the south and obviously not as many.
If they invest in property they have some extra income/cover for redundancy, of which there is a lot up here atm.

PrimalLass · 01/05/2015 14:46

OrlandoWoolf

From the link you posted:

An average house, in the Scotland region valued at £250,000 in 2009 Q1 would be worth £253,728 in 2015 Q1

A change of 1.5 percent

Wooo-hooo 1.5%

OrlandoWoolf · 01/05/2015 14:47

What's your point?

House prices in Scotland haven't altered much.

They have elsewhere. Not just in London.

ConnieBaby · 01/05/2015 16:00

Not up here either in 'golden triangle' Cheshire. It's certainly not a depressed area as you'll pay 500k upwards for a reasonable 4 bed detached. They're selling too But they haven't gone up in price much since 2007.

MoustacheofRonSwanson · 01/05/2015 16:04

Something like 30% rise in Aberdeen 2009-2015 though, so that 1.5% in Scotland isn't uniform. Some places have gone down.

Also I wonder sometimes about average house prices. It's not the price of an average house, but house prices averaged IYSWIM. So if one quarter a load of one bed flats are sold, then the next quarter a load of 3 bed semis, that can distort things too. I know that happened in Edinburgha year or so ago- sudden influx of ftbs finally able to get mortgages bought flats, then soon after the cash injection moved up the chain to 2/3 bed homes as the sellers of the flats moved on.

PrimalLass · 01/05/2015 16:27

OrlandoWoolf

It was you who responded to me with that link.

Me: Whereas elsewhere prices haven't shifted

You: Yes,they have.

I didn't say that they have not shifted anywhere, just elsewhere.

This is going round in circles.

OrlandoWoolf · 01/05/2015 16:34

primal

Just because they haven't shifted in your part of the world does not meant they haven't shifted elsewhere in the UK outside of London.

You said: Whereas elsewhere prices haven't shifted

But they have shifted elsewhere. Saying that they haven't gone up much where you are only shows they haven't shifted where you live.

You do accept that house prices have shifted elsewhere in the UK outside of London and the SE?

OrlandoWoolf · 01/05/2015 16:35

I didn't say that they have not shifted anywhere, just elsewhere

I have no idea what this means. Sorry.

mizu · 01/05/2015 16:43

And what about those of us on average salaries who want to get on the housing ladder? The schemes all sound dodgy.

Don't want to sound like I am moaning but we earn decent salaries, £26,000 and £22,000 and hoping to increase this soon.

We save money every month and will have £10,000 in July. This has taken us over 3 years to save. No holidays, nothing extra.

House prices rising just makes me think this is pointless saving as a house/flat for my family seems like a dream that is getting further and further away.

Sad
PrimalLass · 01/05/2015 16:44

You do accept that house prices have shifted elsewhere in the UK outside of London and the SE?

From my point above:

I didn't say that they have not shifted anywhere, just elsewhere.

My original post was in response to the question of whether we could buy our own house now. Elsewhere does not mean everywhere. I don't get your point - you seem to be looking for an argument.

Unless everyone signs off their posts with their postcode ...

But London house prices affect everyone, because how will graduates be able to do 'a few years in London' now? I was on a shit publishing salary (£750/month) and only just managed 20 years ago. Now it would be impossible, and salaries haven't risen much.

WhiteConverseSkinnyJeans · 01/05/2015 16:45

OMG it FUCKS me off how this is reported as good news

makes me so angry

it isn't even that good news for the homeowners IMO as surely it just means that if they sold they might get more than they paid but then wouldn't they just have to pay the same again for a similar house?

god why cant "properties" just be homes :(

morethanpotatoprints · 01/05/2015 19:33

mizu

My son is 23 and has been doing what you have done for 3 years since being 16. He has bought a house for cash and starting his next project, he only worked at Asda.
Unfortunately its the way of the world and what you have to do if you want to own a property.

Kvetch15 · 01/05/2015 20:40

This reply has been deleted

Message withdrawn at poster's request.

Eltonjohnsflorist · 01/05/2015 21:00

How has he managed to buy house on cash from a minimum wage job? Hmm

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