To worry about 1/3 of people that will never own a home

[jnfrrss]

www.theguardian.com/money/2018/apr/17/one-in-three-uk-millennials-will-never-own-a-home-report

Isn't the housing benefit bill for all these people when they retire going to cripple the country?

Plus the stresses of renting...

A lot of Millennials are due to inherit from their baby boomer parents. Possibly the biggest inheritances ever. Could be a long wait though they're healthy lot.
Only a percentage will end up being used for care home fees. Some parents are already giving house deposits and houses as part of inheritance tax planning. Bank of mum and dad.

I think everyone should be able to own a piece of this land. Why should some people have multiple houses and some none? Everything is just about making money which is shit.

@pinkcrystal I feel the same. Everyone needs somewhere to live, and I can't believe some of us will go from cradle to grave without ever owning a home. The answer is so unbelievably simple, we need the banks to accept smaller deposits. A rule which the government could definitely introduce, but they won't. They'll carry on with other bullshit schemes which only really help people who can already buy a house.

Buying definetley better option for me , my mortgage is cheaper than I was paying in rent and I don't live in an expensive area of the country . Saved the deposit up while I was young and still living at home ( didn't go to uni so working full time from a young age ) so it was a no brainer for me .

If I had to save the deposit now while also paying rent had I have not bought when younger then it would take me years to get it together now so I can see why it's difficult for people .

Also they may have to suck it up and stay at home for longer than they would like .

Well that only works if you have a home to stay in.
My mother threw me out when I was 15, where am I supposed to live to save up rent?

As a tail end millennial, we were lucky as we were able to buy our first flat a decade ago. We've now moved to a larger property and have kept the old one as we don't believe there will be any state pension when we retire. It does help that we live in a city in the North in an area that previously was really run down. The only help we had was off my partner's parents who gave us £4k towards a deposit.

Haha. I wondered how long it'd be before someone used the words "latest gadgets" and "Sky TV". Two whole bloody pages.

In my area you can buy with a 20k deposit plus you need min of £5k for other costs. Do you know how many months of Sky TV that is? 500. 41 years. And most people run a car because they need one to get to work. I certainly do as the last bus from work to home leaves before 5pm and there is no train station.

Others are right. It is the deposit that is the issue. Just because someone cannot save tens of thousands doesn't make them a risk to lend to if they are making high rent every month.

£4K is a lot of money

Teacuphiccup Similar happened to my younger SIL when she was 16 (not thrown out but chose to leave because her parents did not make her living there tolerable) and it took many many years but in her mid thirties she finally had a deposit. Unfortunately she had to sacrifice holidays and the like but now she has £ to spare because her mortgage is half the cost of renting in her area.

I imagine more people have a home to stay in than don’t .
Did you move out on your own at 15 ? Where did you live ? I’m sorry that happened to you but I doubt you’re in the majority

I should mention I bought a 2 bed 10 years ago just before 95% mortgages got yanked. We only needed £6k deposit which was at least mentally not anywhere near as large a hurdle as it is now.

Of course boomers claim young people can't afford due to iphone and starbucks. Idiots.

We bought our house 5 years ago, we live in the north where housing is cheaper than the rest of the country and we only managed to do it because my husbands parents are very generous and gave us 5k towards our deposit and we paid the rest.
In that five years the house we live in has gone up in value by a third which would mean if we were buying it now we’d need a much bigger deposit than the one we used.
Now we are on the property ladder it’s so much easier, we’ll probably have paid of our mortgage in 6 years when we’ll buy similar size property in the suburbs and rent our townhouse out.
Once your on the ladder it’s easy but it’s so hard to get on it if you haven’t got a helping hand up.

Yes I moved out, I lived with relatives until I was 16 then I was very very lucky and I found a landlord who would take housing benefit and let me build up arrears for the shortfall between the housing benefit and rent, I lived in a shared house while I did my a levels and had income support as everyone under 18 is entitled to an education, then I went to a top class university, used the entirety of my first loan to pay back my landlord, got a job and worked really really hard.
After I left university I set up a business and now have a comfortable life.
I was only able to get to where I am now because of the benefits I received and help from kind people who I think were much nicer to me than they would have been to other people in my situation because even though I am, I don’t appear working class.

I am the exception not the rule. Yes it’s possible but it’s not likely.

I grew up in the States. When my parents bought their house in the 70s, the standard was 20% down, with a 20 year mortgage. This was achievable for lots of people, including my far from well off parents, because house prices weren’t barking.

The fundamental problem isn’t the size of the deposit, it’s prices which no longer bear any relation to wages, and an emphasis on monthly “affordability” rather than what you’re actually going to be paying in the end.

I don’t think it’s true that most people have homes to stay in than don’t.
Lots of children share bedrooms that gets quite complicated after 18.

When you look at it in a fairly black and white sense, if someone has been able to pay their (for example) £800 monthly rent for X amount of time, without missing a payment or relying on housing benefit, then it stands to reason that they can do the same for a £500 mortgage.

The issue is saving for a deposit while paying ridiculously high rents. I don't know whether that means a return to 100% mortgages for first time buyers, in the absence of rents falling or what, but I think if the deposit/rent problem could be eased, home ownership would become more achievable.

Also (sorry) but make life harder for the type of BTL landlord who buys up all the flats and two bedroom houses to rent out at extortionate rates, without doing any repairs, refusing to rent to tenants with children etc.

Also make five year tenancies an option

My rent on my small one bed flat is £1100, plus all bills. I cover all that myself. A one bed flat to buy in my area will be about £320,000. I have no help from my parents. I’ve not got a hope in hell so I don’t worry about it anymore. I go on holidays, eat avocados and buy soap from the white company. I’d love to buy my own home but I also want to live my life fully, you only get one shot at it.

£1100 a month

You should be very proud of yourself Teacup .
I don’t think an 18 year old should have a problem sharing a room . Yes it’s not ideal but it’s hardly torturous. Heck I had to share a bed with my sister until I went to university.
Also how many 18 year olds can afford a mortgage even without a deposit ?

The answer is so unbelievably simple, we need the banks to accept smaller deposits.

Yes, and then have a US-style crash like they had in 2007—2007 for precisely this reason!

Thanks Agnes

At 18 it’s fine but it’s after 18 that people need to go home to save for a deposit. Most people saving for a deposit are people going home after uni and saving then.

It’s a bit different having a 25 and a 27 year old sharing a room and it’s a bit unfair on the parents to assume that they should have to facilitate this.

Some people’s parents may be able to do this but I don’t think it should be case that it’s expected. After uni you are an adult and there’s something wrong culturally you should be expecting to move back home.

We managed it when we were young by continuing to live with our respective parents rather than moving in together and renting. This enabled us to save hard for a deposit for a house in a new estate nearby.

Our priority was always to secure a home before we got married or had children.

It's a question of doing things in the right order, isn't it? Nowadays people move in together in a rented property, have children then wonder why they can't afford to buy.

susannah not everyone has the option to stay with parents. Not everyone earns enough to save up for a place.

Why is it always the fault of the poor that they can’t get ahead? Not everyone is as lucky as you to have a job and supportive parents.