To think it IS possible to get on the housing ladder?

[SleepyHeadThisTime]

I'm not talking about people living in London - god I would not like to be a first time buyer there!

However, I live in one of the most expensive areas for housing in the country and DH and I have spent the last 10 years scrimping and saving to make it to our 'forever home'. Our first house was an ex council house and an absolute dive but we ploughed all our savings into it, did it up, sold it and did the same again twice more. We have never earned more than 40k per year between us.

AIBU to think there is an element of choice about getting on the housing ladder? I have friends who say we're so lucky to be in the position we're in, however when we were spending every weekend sanding, painting, tiling and the rest, they were having holidays abroad, meals and nights out and new cars?

I don't begrudge them this (we're now enjoying all these perks) but I am a bit irked that it's put down to 'luck' and not bloody hard work and very frugal money management?

Surely if you're earning there is the potential to get on the property ladder? I know some who weren't willing to go down our route but still managed it through the government help to buy and shared ownership schemes.

I understand circumstances such as buying on your own and being on a low salary etc make this much more difficult but when I read about 'millenials' earning 30k plus per year and living at home with parents because they can afford to buy it makes me a bit

Btw DH and I bought our first house in 2010 so not in the golden era when houses were only about 3 times yearly salary!

Quite, and also the focus here is only on people who can afford to buy even in very cheap areas. In places where houses are 40k, what's the median local income? It won't be high, and a lot of it will be top up benefits. Not necessarily even possible to get a mortgage with.

Those who left school, had free university and got jobs for life and cheap mortgages and were able to afford for only one parent to work.

Wow. Yes, I got "free" university, but it hasn't helped my career at all. Job for life? Made redundant 5 times in 40 years. Cheap mortgage? Yes, 15% interest is REALLY cheap. Basic rate tax was 30%, too, 50% more than it is today, so your net pay was far less in real terms.

No-one that I know of the same generation (born late 50s-early 60s) was able to buy on just one wage and have kids.

When I bought my first place, prices were low (£24k) but my mortgage was 5 times my salary (my boss lied about how much I earned so that I could get a big enough mortgage). I had found a cheap 2-bed doer-upper, because the only way I could afford to buy was to rent out a room to a lodger. I lived in that house for 9 years before I could afford to live in it on my own, and every spare penny went on doing it up. I had 2 holidays in that time.

I honestly don't think it's ever been easy for people on average incomes to buy in the south-east. I can remember there being such a shortage of properties that people queued overnight outside sales offices on new-build estates as each tranche of new homes was released and prices quadrupled in about 5 years in the 70s.

To the poster that says her son earns 12k and can’t afford to get a mortgage with that. I’m guessibg he is very young as this below NMW for under 25s, so his wage will go up, and he has plenty of time to save?

I think it is possible for people to save and get a mortgage, yes IF they don’t stay in an area where Property prices are extortionate. I worked a pub job at nights for three years when I was in my mid 20s so I could afford the deposit on a flat (as a single person).

I think there is a lot of people who love me to moan they can’t afford it when they’re just not willing to save and possibly take on a second job, but likewise there are others who live in expensive parts of the country where it’s just not realistic, giving the property prices.

Who love me??? Like to! Stupid fat fingers , stupid iPhone!

Another reason that's often overlooked is house price growth over the last few years & how it allowed many with "normal" jobs to move up the ladder. 2 bed flats for 350k + bought today are unlikely to see the same growth.

I think it must be very hard.

I bought a two years ago in the north of England. I got a 2 bed new build for 100k. I was very very lucky and only needed a 5% deposit.

I don’t even earn the National average salary but for where I live it’s a lot of money. Average salary is probably about 18k.

Children are a huge barrier to working and savings. I wouldn't have had kids until I had a solid income stream, savings and preferably my own home in place. But other people don't wait and plan like that. That is personal choice though I do think people often don't consider the implications of starting a family on long term finances. Not a criticism, just how things are.

Hmm just 10 years you say...great...hang on dd will be at uni by then and might never come home

There are a lot f factors contributing to why people can't get onto the housing ladder aside from house prices.

Firstly you say that there are houses available for the same price you bought them at at it's just about having the attitude to do a bit of work on them. But all that work costs yet more money, so where do you live once you've bought this place AND are also trying to save and make it habitable.

Secondly Rents have risen enormously over the last 10 years. This means that people who are renting can not afford to save hardy anything anymore and thus can not afford to begin to scrape together a deposit.

Lastly mortgage lenders have changed their attitudes, IF you have an excellent credit rating AND find a great lender you MIGHT get 4x salary. Which for most young people equates to around 200k for a couple.

The area I am in (not London) you can't get a studio apartment for that. The only property you could get would be in serious disrepair and would need a bit more spending on it.

In short YANBU to think that your friends should realise you are not lucky but instead made sacrifices they didn't BUT... YABU to think it is exactly like it was when you did it just based on house prices and to judge an entire generation based on that.

Pansies I totally agree that housing is a basic need and should be available to everyone.

With the circumstances I'm talking about my friends do have access to housing, rented, but do not own their own property. House prices are ridiculous but have been for some time - long enough for me and my peers (circumstances allowing as I've said before) to be able to prepare to buy.

My friend did prefer to spend her money as she wished on holidays etc but now wants to have kids and wants to own her own house before she does so. She's only prepared to buy in my area though and can't afford it. However she has even ruled out the town 4 miles away where house prices are much, much cheaper which makes me a bit at her choices. This is absolutely her issue but I am a bit taken aback when she says I'm lucky to live where I do, but she isn't willing to compromise at all.

I appreciate that I live in a cheap area with a long-time DP so am lucky to have bought young and traded up, compared to my single, higher-earning sibling in London who still rents through lack of choice.

However, I do get bemused by (local) friends who want to buy yet spend thousands furnishing their rented houses to immaculate condition rather than saving a deposit: I'd rather have the property first and get nice wallpaper later.

That wasn’t the issue 19lottie82

The issue is that years back you could get on the ladder on that kind of salary and now you cannot.

The issue re kids though that if ftb are in their 30s they might feel pressured to start a family due to fertility.

You are absolutely right op.
Home ownership has always required an effort, self sacrifice, and a determination to make it a priority.

My parents,grandparents and I all have the same tale to tell about the necessity to save hard, cut back on spending to buy our homes, and of course there will always be those who are not prepared to do that.

When we got engaged we both stayed living with our respective parents and saved hard until we had the deposit for our first home. We were determined not to rent, in fact it never occurred to us to do so.
Once we had got the house we then planned the wedding, then had the children. It's all about doing things in the right order.
Now of course people seem to have children whilst renting and then wonder why they can't afford to buy!

I appreciate that you have sacrificed a lot to get your own home. That is very impressive and disciplined. However your reward is your house, it seems a bit much to also want accolades from your friends.

I think housing is a serious concern currently and for future generations. Yes, people can do what you did. However I don't think it is a reasonable expectation, or one that is in line with the kind of society I want to live in, that someone has to spend a decade strictly penny pinching and sacrificing all free time to be able to own their home. I think this should ideally be more accessible to more people, particularly given the lower barriers to entry in home ownership in past generations.

I also see it being a problem as it is escalating - with house prices increasing and wages stagnant. If it took you a Spartan decade, will it take a 18yo two decades? Is that reasonable - even if it is possible?

And I say this as someone who has been a first and second homebuyer (in London) over the past five years - so although it's not now a problem that directly affects me, I see it as a huge social problem

I think it's the thought of oh we can only afford to sace £50/£100 pm it's going to take x years to save', I think that's what puts people off.

It's fine if your living with parents/flatshare etc, if all your wages go on genuine living costs it's easier said than done. Not everyone have £500 to save each month.

We were determined not to rent, in fact it never occurred to us to do so

Thats where all those stupid renters are going wrong 🙄

Because everyone’s parents can afford to host them until they’ve saved enough to buy a house.

And ofcourse everyone can find a job in the town/village they grew up in.

YABU

I bought my first property in 1996 in the south east. I was on a full time nurses salary. I had no savings beyond my 5% deposit. The flat was less than £50k.

In the time since I have been promoted and earned a fair bit more. I still could not afford that same flat now....they sell for around £200k

You have done well but I would suspect you've had no sudden emergencies either.

On our wages we'd need over 200k deposit to buy a 3 bed for our family of 6. Our rent is £1100 a month. There's nothing left to save. But you're right we should definitely just stop making excuses

I could weep with mirror at SuzannahL with her cosy "oh we just lived with parents until we were able to save enough".

Yeah...you do realise that's not possible for everyone don't you lovey?

Not all parents have the room for a child plus their partner for as long as it takes, not all parents are nurturing and supportive.

Still it must be nice in that ivory tower with those rose tinted specs.

Mirth not mirror of course.

Of course people can get on the housing ladder. They do everyday.

Doesn't mean everyone who wants to can though.

When we got engaged we both stayed living with our respective parents and saved hard until we had the deposit for our first home. We were determined not to rent, in fact it never occurred to us to do so.

What a luxury that renting didn’t even occur to you. Seriously, do you realise that is pure luck rather than a sensible life choice? Luck that you had parents, luck that you had parents with room to house you, luck that you had parents that could afford to house you, luck that you met a partner, luck that you met a partner so young, luck that you met a partner with parents who could do all those things too, luck that both of you were educated well enough to have jobs, luck that niether of you got too sick to work?

You realise that was all down to luck?

Nah she doesn’t. She’s the type of person that thinks it was all about her working hard for her money, everyone could do it if they just tried hard enough etc etc:

It’s the “I never had any help” mentality. See here for an example.