Aibu to think that "suspended adulthood" is going to lead to large problems?

[BlancheBlue]

www.theguardian.com/society/2016/sep/22/young-people-living-in-a-suspended-adulthood-finds-research

Just this really. There was a telling comment about this article with the ever increasing age profile of parents the chance of children knowing grandparents is going to be remote.

I think lots of the boomer generation really fail to understand this. Whenever it is said it is tough for young people que loads of "well I worked my arse off and owned a house by the time I was 21" type comments.

The gulf between house prices and wages, the concentration of jobs in one area of the country, and the insecurity of renting, are all not the fault of any individual person. Setting people of different generations and different circumstances against each other is not helpful.

Choosing to behave like a patronising twat who is unable to look outside of your own experience is something that an individual is in control of.

I had to move countries...

The problem is complex and has many causes.

1. Inequality - perpetuated by the small number of people at the top. They are asset stripping the country, so that public money ends up in private coffers (Sodexo , the NHS etc.)

2. Poor worker conditions- for example zero hour contracts expanding from a useful niche thing for casual workers to a standard work pattern. Fees for tribunals. Two year period before decent conditions kick in. These all lead to a low wage, low skill economy but nice fat profits for the people at the top. Wages are low and the cost of living is high - this makes it very difficult to save for a deposit

1. Supply and demand - England is a very crowded country. The uk population density figures are deceptive because they include Scotland and Wales - of you just look at England it's very densely populated.
2. The tendency of housebuilders to build shitty boxy tiny semis instead of the large, spacious low rise flats we have in Europe, which can house more families per unit area, in better conditions
3. House builders banking and hoarding land
4. Concentration of jobs and opportunities in one area, as explained so well above.

What would help? Better wages and conditions for uk workers. Better educational routes and investment in R&D and knowledge/manufacturing/engineering type industries so that we have a better skilled workforce. Who can demand better wages
Better worker protection
More efficient house building. Sorry but the idea of everyone having a semi has to go - nice big, good quality low rise European style flats in landscaped gardens are the way to go.
Reduction of inequality- we are headed back to serfdom the way we are going

53rd Exactly. I don't know why some posters are so utterly determined to ignore the graphs and statistics about how house prices have rocketed whilst wages have stagnated and doggedly persist in their belief that anyone can buy a house if they get rid of their phone and stop going to Starbucks and that young people are greedy and 'want it all'. They really don't.
As I said earlier, DH and I got a mortgage on a 3 bed house very easily 20 years ago. Despite us both having been promoted since then, we would genuinely struggle to get a mortgage on a one bed flat in the same area now.

I've not seen anyone denying that the affordability of housing is a massive problem in many areas of the country though? Apologies if I've missed that.

In my idealistic world I'd like to see the following

Many of our successful industries/companies relocating to areas of the country where there is great social need. The north/south divide is as profound as ever.

someone to sort out the disgracesful tax loophole that leads to wealthy foreign investors buying up acres of property in London and sometimes not even bothering to let it out, just relying on rising house prices to make their profit

reform of Landlord & Tenant Act

rent caps

banning of second home ownership

banning sale of council houses

banning of tenancies for life in council property

banning sale of housing association property to HA tenants

help for elderly people who want it to move from large family houses to purpose built mixed communities

compulsory purchase of long term empty properties and grants to people willing but unable to afford to fix them up, or subsidised "full repairing" rent applying there

that's just for starters.

I guess the massive increase in the divorce rate also has an effect on the need for new homes when compared to say 30 or 40 years ago.

For those hoping for a crash, be careful what you wish for.

We're trying to buy in Ireland right now in the aftermath of a crash. Trust me, it's beyond shitty and the first time buyer hit harder than most.

Banks not lending to anyone but the surest of bets. Forget it if you have any history of debt or anything other than a cast iron permanent job.

Nothing on the market because nobody is selling. In particular, nothing suitable for a first time buyer because no-one is looking to trade up.

Anything decent that does come on us being chased by dozens of people, creating its own microboom. People are still paying stupid money because desperation.

There are no benefits for first time buyers here. It's all the bad bits of a boom with some extra shit thrown in. The only people who benefit are the cash rich.

I bought my first home at 18 (15 years ago), it was a flat that cost £125,000 that same flat is worth over £350,000. I needed a £5000 deposit and earned £18,000 a year. (My abusive ex bought me out of it a few years later)

I could only dream of buying it now!!!

The problem is that property is seen by many as a solid investment rather than a place to live. They can borrow money from the banks on the strength of it and, from BTL to foreign investors, that makes economic sense. Taken long term, its value will rise. Even if the building deteriorates, the land is still valuable - The Bishops Avenue in East Finchley is an example of this.

Pensions are no longer seen as a safe guarantee: so long as you can afford it, that solid property is yours. Barring an Act of God, it's not going to disappear overnight as many pension pots have done.

Until that attitude changes, you will always have fewer houses than demand. And it won't change because it's the way our society works, lends and lives.

I agree that in some ways there is too much focus on people owning their own home. There is no need to own before having a family. However, the reality of rent prices means that in many areas of the country it is impossible to rent a family-sized flat on an average salary while also putting money away for a deposit / pension / future security.

The average family with two small children is effectively living on one salary (because even if both parents work one salary will disappear almost immediately on childcare). The sums often simply don't add up in a way that provides a rented two bedroom flat together with a reasonable standard of living and the ability to save for longer term security. While it is not impossible to make it work, I really don't blame people for doing the sums and realising that it is simply not worth the immense sacrifices that need to be made to provide childcare and living space for a family. No wonder more women are delaying parenthood or choosing not to have children at all.

It is harder now, especially for young people who's families aren't in a position to help them but it is doable.

I'm 25 and live in lovely rural Staffordshire.

My family told me aged 14 there was no money to help when I got older, so I got a job at 16 whilst in education, went to Uni and still worked and still came out at the end with a 1:1 and nearly £20k in savings. It wasn't that difficult, I got a job as a nursing assistant and worked nights in nursing homes. I could do 3 nights a week because my lectures were only about 5 hours a day, so I'd go to them in the morning/ evening and sleep the rest of the day, then on my nights off went out with mates and had a social life. I never felt I was saving tons, just transferred it into a different account by SO every week.

I graduated, got a graduate job and started on £16k a year. I bought my first house aged 23 for £93k. It's a 2 bed end terrace with beautiful views in a lovely rural area. I put down £18k on the deposit and used the other £2k for fees and some fixes that needed doing. My mortgage is £360 a month which was easily affordable on my £16k salary.

In just under 3 years I got myself 2 promotions and I'm now on £26k. Not a fortune but very very livable and I'm currently squirreling money away for the deposit on a bigger house.

Student loan costs me £15 a month, it's not the crippling debt everyone says it is and it's interest free, it's the cheapest money you'll even get.

Oh, and I have a smart phone too

I wouldn't want to rent with a family unless I was in social housing.

A friend of mine has just been told by her letting agent her rental value has gone up £300 a month in 2 years (she's getting in new tenants) - can families afford those kind of increases whenever they move? It's not easy with childcare costs and potentially reduced salaries

That said- I don't really understand people who post and say I'm a 40 year old student and my partner works in a bar and we're unable to buy- well, no, of course you can't. Home ownership is generally reserved for those with decent, full time salaries. You do want to borrow an extremely large amount of money, let's be realistic about it.

Pluto - you have to pay more student loan if you earn more though. So if you suddenly earn £40,000 you will be paying off £3-400 a month. By the time you have paid extra tax on that £40k, the higher student repayments basically leave you with the same each month as if you were earning £15k less.

Plus surely you can understand others at your age have dependents it's hard to save when you have £1000 a month nursery fees

Its not as easy as moving to a cheaper area. Im not going to move up north as my family are down south and my dd loves them and her friends at school. Why should i uproot her?
The next town along is cheaper but then she would gave to move to s worse school. Plus it would add an hour on the school run.
I was born up north (Macclesfield) and i did uni in Liverpool... love it but as my dp, family and dd are setyled here im not going to move.
Im just not THAT desperate to own!

Commute... not school run btw!

Artandco, wrong! Your loan repayments are calculated as 9% of whatever you earn over £21k, so for me earning £26k, I pay back £450 A YEAR not a month. So currently about £37 a month...

If you earn over £41k the interest is at 3% but that doesnt increase the monthly payments at all, just means you pay it back for longer.

If you drop below £21k you stop repaying and incur no charges. It's the best loan you'll ever get.

studentcalculator.org/more-info/cash-course/paying-for-uni/repaying-your-loan

Artandco if you choose to have dependents before you're financially settled then savings are a sacrifice you should surly take into account when you're weighing up the pros and cons of having a baby.

Pluto how can 9% of £26k be £450? It's £2,300 ish (too lazy to check)

Sorry just checked your link- yours seems to be incremental, mine wasn't. I must've been on an old style one

Your loan repayments are calculated as 9% of whatever you earn over £21k

Only if you took out your loan within the past few years. The earnings threshold is a chunk lower than that on the plan I'm on (post 1997, pre 2012), meaning a higher monthly payment.

It's going to take a bloody lifetime to pay it off at £30 a month

Dontyoulovecalpol, yep, hence why it's about the free'est money you'll ever get :)

You also don't notice it's gone because it comes straight out of your wage, in this house we call it "clever tax" :)

pluto clever tax ffs. Are you george osborne?

My tuition fee will come to a grand total of £11040. Not much to pay back - except maintenance loans too. Hopefully I'll be able to get a good job and not have to worry about it.

I'm moving in to a flat within the next week, the council pays the rent and then after I leave uni I pay £425 a month. I'd like to stay here but I'd never be able to buy it out.

Well Dh def pays more than that, it's £380 a month at the moment I think, that's £4560. He finished uni before 2012 though if that makes any difference.
If your paying just £37 then good for you, but not everyone is entitled to pay so little

And the children thing, well that's why people are leaving it later. But most will eventually have children and have to pay for them. If you do postgraduate also it doesn't leave you much time to pay back uni fees before your 30+ years

If young people wanted to stay in Europe the immigration would stay high, exacerbating the housing shortage, keeping housing expensive.
We've brexited , immigration should reduce. Maybe a fall back in the economy will also ensue, more migrants will leave , house prices will then fall with reduced demand and young people will get into the housing market.

And to the person who said prices have risen for 15 years - they are what they were 10 years ago round here. Not everyone is in the south- east youd think theyd know by now

Loads of cheap housing in wales. I own 5 properties all of which were bought in livable condition, 4 of which cost me under 100k to buy and could still be bought for around the same. However I live in Rhondda cynon taff so good luck finding any job let alone one that pays enough for you to get a mortgage on one of these.