To be really worried about the prospect of privately renting forever?

[Confusedmartie999]

I'm in my early 30s and always have privately rented since I was 18 after my mum moved to the country and I stayed for my job / friends.
I then met my husband who was flatsharing so we moved in together 8 years ago.
This was the wrong decision as obviously once we were shelling out £900 for a 2 bed flat we weren't able to save hardly anything.
Anyway, here we are now, 2 children later and I've recently gone back to work evenings to top up our income so monthly we now bring in £2400 and our rent is £1100 so again nothing to save once we pay for everything we need and the kids stuff / travel to and from work etc.
what happens when we are old age pensioners who won't have he deposit / ref fees / month in advance every time a landlord decides to sell or increase the rent beyond outlet affordability? Where will we end up? :-(

It does depend where you are in the country. I am from the NE and there really are reasonably priced properties there and in Yorkshire where one relative moved to from London. As someone said above don't rule out moving.

As someone else said buy as young as you can where you are. We bought in zone 5 rather than renting in Central London so I had a huge commute and worked full time with a 2 week old baby (not sure most mumsnetters would do that!) and bought when I was 22. It was very very tough but as others who have bought above say you start in something awful and hope to move up. What seems to be happening is people have gap years, don't get started on careers, years off, year long maternity leaves rather than buying as young as they can something grotty in an awful area with long commute. Obviously some people never have and never will earn enough to buy but some might in different circumstances. I am writing as someone who has paid a mortgage for 30 years and we moved up from tiny place, to 3 bed, to 4 bed to 5 bed but in an outer bit of London most people will not slum it to live in. It's all about compromise at times. Also if you cannot afford to buy in London you could buy for your retirement somewhere in a cheap bit of the country. Lots of London teachers do that. No chance of buying a flat here but can afford that 1 bed place for £65k somewhere in the country. Better than not buying at all.

Madreloco....

Touchee

Ouch

Is it really as simple as there just not being enough houses? I don't know. But if it is, then one thing I don't understand is how they build enough homes without bringing prices down and potentially pushing many into negative equity. Is this WHY we haven't seen "enough" housebuilding over the last decade or so? To keep the bubble inflated?

I don't understand the model this government, or any other for that matter, is working to to avoid a calamity in a house price drop. Why can't we look at ways to cushion the blow for those affected by negative equity if it happens, if it's recognised to be for the greater good?

I bought a new build many moons ago, it was £10,000 more than the equivalent existing stock and it was a huge development of lots of houses.

When new builds are priced they are priced to match the existing stock so I'm not sure how it brings prices down?
I know existing stock suffers with the disruption of build and can't match the builders offers. So they take a slight short term hit but in the long run they are still worth what a 3 bed semi is worth (I'm not saying its a starter home just an average family home!)

But surely it's a matter of supply and demand? They may price new builds at market level, but at some point competition must play a part?

And really, have new build estates been that successful in selling at market rate? I've heard many tales of larger properties not selling, but the smaller "affordable" homes going like hotcakes.

A lot of the small newbuild stuff round me goes to buy to let's. In fact it's actively encouraged with big posters outside them talking about yields.
I think they are successful at selling close to market rate as they tend to cover your stamp duty as the discount.

"A recent report from home insurer LV= revealed that more than one in 10 new homes built on brownfield sites have suffered problems such as flooding, contamination, poor drainage and sewage problems as a result of the land they are built on.

As well as the physical problems that may arise, the biggest hurdle for many new-build buyers is financing, and, having been stung in the past, banks and building societies have reined back lending in this area.

"The new-build sector has been hit hard since the downturn. Values of new-build properties have fallen harder and faster than older homes, which has meant many lenders are nursing losses due to overinflated valuations," says Melanie Bien, of independent mortgage broker Private Finance."

www.independent.co.uk/money/mortgages/buyers-beware-of-newbuild-home-headaches-2277291.html

It's potentially even more worrying then for renters, if these are being pushed into BTLs.