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.

It is amazing to me that so many people are in SUCH denial about this. It is demonstrably the case that there is more student debt now, and that the ratio of housing cost to wages has changed unfavourably.

Yet there are still people on these threads who insist that those things haven't happened, that because they slogged their guts out and ate nothing but cheap baked beans for a few years to buy their first house, all the younger generation need to do is to emulate their fortitude.

I know for a fact I have been poorer than the vast majority of people ever are, because I have been homeless. Plus, as a postgrad student in London, I lived on far less than you'd get on benefits in an extremely expensive city for 4 years. I have done the eating food that is going to be chucked out by supermarkets, I've done eating out of dumpster bins, I've done the not drinking for years because wine is too expensive. And I am saying: it is NOT the same now as it was 20 years ago, and the picture is far, far bleaker for many young people who don't have family wealth to support them than it was 40 years ago.

If I spend 30% of my income on rent on £85k, I'm still going to be spending 30% of it on rent at £50k in a different part of the country. There is no corresponding drop in the ratio of rent to income.

That makes absolutely no sense whatsoever. If you want to save for a deposit, why would you stick to spending the same proportion of your salary on rent when you didn't need to?

The answer is to secure more tenants rights including longer leases.

I would be THRILLED with this as a solution. I love being a tenant. I don't love having to move when the LL decides they want the property back.

I'm not into building equity, I just want the place for my family to live and thrive securely.

GummyBunting Nottinghamians it is!

Because I would still need to spend a similar percentage in order to have a house large enough for my family.

A corresponding-sized house is still proportionally the same amount of my income in London as it would be elsewhere.

feeling sorry for the senior workers in Nottingham who can't possibly live in a 100k house on a salary of 50k.
I'll have to tell my music teaching/ HOD friend his job doesn't exist.
I'll have to tell another one, slightly higher as Director of music for the County LA, his job doesn't exist either.
This thread has some stupid posts.

I sympathise with you Bumble, but that's a choice you're making. You want to work in that job and nothing else so you won't move, and that involves a cost.

Smallfox, do you genuinely think no one in Nottingham earns £50k? You might drop dead when I tell you some people earn even more than that!!

It is amazing to me that so many people are in SUCH denial about this. It is demonstrably the case that there is more student debt now, and that the ratio of housing cost to wages has changed unfavourably.

The repayment level on student debt is so favourable that its barely noticeable - one less visit to starbucks a week will cover it.

Rents have increased in areas of high demand for housing jobs - ie London and the SE. In parts of the north and wales rents have been static for years and in some areas have dropped. House prices have increased at varying levels across the country, however interest rates are at an historical low meaning cost of purchase is relatively static.

Interesting comparison the average house (average as taking into account regional variations) using 1993 which T4 mentioned earlier.

1993 average house price- was £50,128 (ONS) interest at 5.8%
2016 average house price £216,750 (Gov.uk) interest rate 0.25%

The increase in value has cancelled the interest even if the rate remained at 5.8%. I will not see that return on my investment on the house I bought in 2005.

Average salary in 1993 £20,208 (F.T) 2016 average salary £27,600,(Gov.uk) to buy a house double the cost.

Council Tax Band D 1993 - £568
Council Tax Band D 2016/2017- £1530 (salaries haven't gone up that much)

Generation Y average student debt £30,000 in 2015, according to the UK Graduate Careers Survey. Threshold to pay back is £17,335 Annual Salary.

I think that there is huge ignorance of the issues facing the 20 somethings of today, and it is not just a matter of saving up & cutting back. I honestly don't see youngsters out spending £400 a month-Town Centers at night are ghost towns. This is before we start talking about Zero hours contracts, childcare costs, lack of social housing, free movement of labour reducing wage costs...etc, etc.

shovetheholly excellent post

My Nanny friend didn't live in. She had a second job when saving up her deposit though.

Heaven forbid people want to live near their friends and ageing parents.Im already an hour away from them, in order to buy a home that is affordable for us i would have to live at least 4 hours from them.
I want them to have a relationship with their grandchildren, i want to be able to go to them if they need something, i certainly can't afford for home help to go in. So it will fall to me. How will i manage that so far away?

Anyway, what happens when i move to a 'cheaper' town, the house prices will go up pushing 'cheaper town' current residents where exactly?

*Because I would still need to spend a similar percentage in order to have a house large enough for my family.

A corresponding-sized house is still proportionally the same amount of my income in London as it would be elsewhere.*

That is absolutely not true.

42 and finally a home owner. Lived in rented for 24 years struggling initially on minimum wage, had child at 26 (alone after exhusband ran off) and then changed to better job more stability and more money. after rent, food, childcare, transport and bills was left with £15 per month 'play' money. all furniture from freecycle, hand me downs were normal, presents at christmas from pound shop. Didnt claim benefits (even ones i have since found i was entitled to) worked full time long hours and didnt have holidays etc. saved constantly to only go back to 0 balance each time rent was hiked up. told constantly it would be better for me to buy told i was wasting money on rent spent £90k+ on rent in the last 10 years alone! but not enough left in the pot to save for a deposit. Lived in a house with constant inspections and no work being done on it
I still only have minimal savings, I only ended up on property ladder as new partner sold a property and had enough to put down a deposit when we bought together

I worked bloody hard as part of the 'young generation' in fact still do and see my situation no different to the problems being faced now. My 70 year old mum had the exact same problems in her 'young generation'

the gross generalisation that we are all sat around in swanky bars drinking and using the latest technology just shows a lack of understanding and respect

www.indeed.co.uk/jobs?q=Account+Manager+%C2%A340,000&l=Nottingham

Jobs in Nottingham

ruddy MNers, all doom & gloom.

t4 you have an obsession with young people buying starbucks - do you really, honestly believe this would solve all the problems of affordability of rents and housing?

Meanwhile, back at the ranch bank

www.bbc.co.uk/news/business-37439834

A major scheme designed to prop up the UK housing market is no longer needed, the Bank of England has told the government.
The Help to Buy Mortgage Guarantee Scheme allows lenders to offer loans to people offering a deposit as low as 5% thanks to government support.

(contd)

London prices now stretch from basingstoke - colchester, Brighton - Oxford. Obviously they aren't central london, but they are all commuter towns. Thats a big old chunk of the country

This is interesting gillybeanz:

"Today 15:00 gillybeanz

I used to work in property in the Midlands. You can get a house in parts of Nottingham for £80k. Would you want to live in it? Not in a million bloody years.

Exactly, this just sums it up. So it was ok for my generation to do this, but not good enough for this generation. They are somehow worthy of much more and shouldn't belittle themselves."

Not sure what generation you are but my parents and friends are hideously snobby and openly shocked at the state of some of the areas me and my peers are forced to buy in

The cost of purchase is not static for the reasons budgie (excellent post, btw) points out, AND because of deposits. 10% of £50,000 is a lot easier to find than 10% of £200k.

t4 you have an obsession with young people buying starbucks

I suspect t4 is a Social Media Champion for Starbucks, being paid 1/10 of a penny per page view ?

I went to the bank to ask about a mortgage, they wanted 50k deposit to lend a maximum of 250k. Which i would have had to lie that our income was 50k (they pushed that 'lets say you earn'.
So just because its reported doesn't mean its available at a 5% deposit