A generation waiting to inherit

[Okaydoklay]

With house prices being so high, are we creating a generation of people who home ownership is out of their grasp, and those who have wealthier parents , they are all waiting for their parents to pass to ever be able to afford their own home.

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Yabbers, because you didn't earn it. Because someone else earning the same as you will be stuck renting whilst you have inherited your deposit for a mortgage. And maybe their parents worked hard and sacrificed a lot too, but they couldn't afford a property to be passed on when they died?
That's how it's unfair. Simple.

Not me! Parents lived in social housing and didn't/ couldn't buy. Dad is finding his own care now. We won't be rich !

@Londonmummy66 Oooh my mum had exactly the same argument with her BIL who will be 75 next birthday and is in a similarly comfortable position, but is feeling most aggrieved despite having a typically Daily Fail attitude towards other people's benefits. All I can say is I'm glad I wasn't there! (Seethe is an excellent word btw )

Thanks The Navigator :-). You may be right, horrible thought. Neither of our parents had dementia and one of husband's grandmothers lived to 103 without it so we live in hope. Best to live for today really.

Yabbers:- "...house and business will be passed on to my siblings and I. I can’t see how that is unfair."

It isn't unfair. I can't imagine anyone turning it down either.

ooooohbetty, how did they all get their deposits?

House prices are expected to drop when babybomners die off.

"Also not everyone will leave their estate to their children, it seems the thing to leave it to grandchildren now and also many people will release equity so they could gift that to their children or spend the lot on themselves,"

Also remarriage - a surprising number of mn threads where the surviving spouse has remarried and then left the entire estate (I mean the amount, not landed estate!!), to new spouse .

OP, why do you think it's a given that children wait to inherit?
I could have millions in the bank, but I am not sure if I would leave everything to my DC. - Especially if I get the feeling that they only knock on the door to see if I am still alive!
Or I could use my millions to help DC out financially, maybe not a house but lovely family holidays ... the type where daughter in law complains on MN...
I think my millions would be better spend in a more selfless way, one that will always remember my name. Like a new wing for the local hospice... The Ylvamoon Wing!
More likely, my money will be used to fund my care ... I am sure the authorities will use up every penny.

With care home fees at about 1k/week I don't think too many people should count on inheriting anything.

@LauderSyme - DF is not a DFail type I'm pleased to say - just hadn't really thought things through and has a tendency to the "I worked hard all my life for this" school of thought. I think he was a bit shocked when I pointed out that TWO people working equally hard would not be able to afford what he has had (and rather taken for granted).

Aren't baby boomers in their seventies and eighties now? So probably have 10-20 years left or more. I'm certainly not waiting to inherit. I have one grandparent left, in his 90s but that will be split so many ways there won't be a great amount remaining. And my parents are only in their 50s, hardly at death's door.

"House prices are expected to drop when babybomners die off."

Yes, i agree that might happen. Bboomers and pre bboomers (what are they called?) will leave their houses to dc, who I think by and large tend to sell them, increasing supply of housing. A lot of the proceeds of sale will go straight back into house prices as dc and dgc use the lump sums to buy more property (either upsizing, btl, second homes or deposits on first houses). But some will be taken out of the housing market, in inheritance tax, and that might lead to a fall in house prices.

On the other hand bboomers may also be leaving substantial amounts in cash and shares, that they haven't invested in the housing market. Inheritors are more likely to use those sums to invest in property again (property being the favoured investment these days I think) - so this might equally lead to an increase in house prices. It would be interesting to know if economists have worked out the likely effect!

No, some baby boomers are 54. It will be a long time if you expect house prices to fall when a whole generation has gone.

1946 - 1964 Baby Boomer generation. I just miss it.

Yes, I think you’re right OP, I’ve had several colleagues past and present talk about what they will inherit when their parents die even though said parents are only in their 50s. House prices are so high I don’t know how anyone can afford to buy without an inheritance or a six figure salary!

I was in M&S recently, buying a gift. The cashier offered me a Sparks card and I turned it down, joking that I can't afford to shop in Marks, unlike all these pensioners with their disposable income! (that particular branch always seems to be jampacked full of well-heeled, silver-haired shoppers).

She said she wonders what will happen in a generation's time when they have all passed away and the new generation of pensioners don't have as much income and housing wealth. It certainly gave me pause for thought. Ah well, maybe the planet will be uninhabitable by then...

Well M&S cashier not very intelligent, or those made to think about the comments
Generation x are Thatcher's children who bought their own homes, have good pensions and usually good disposable income. They are marketed as much if not more so than BB as obviously younger, so will last longer.
It's the generation after X is that Y that may struggle.

We’ll be in out 60’s when our kids get onto the property ladder. DH had a reasonable inheritance a couple of years ago but we’re already in the £2 million house bracket with loads of equity so that made no difference to us. We’ll probably give the kids a big deposit if and when we downsize., otherwise It will come from savings.

@DarkAtEndOfTunnel Very well said. Depressing but very good points. The recent analysis in the media about UK land ownership was very telling.

@Londonmummy66 I certainly did not mean to cast such a terrible aspersion on your DF

Ylvamoon- one to remember your name LOL

Ylvamoon- hopefully you have a relationship with your kids so you don't need a charity to remember your name

Ylvamoon- totally selfless...but please don't forget to mention my name

@Chovihano So the argument stands, just further into the future?

the cost of caring for the elderly worries me. Ok, so the house of baby boomers can be sold eventually if they end up in expensive care homes, so they will be ok. But it will mean leaving nothing to their adult children or grandchildren who may not have been able to buy a house due to our ridiculously flawed housing market.

What will happen to THAT generation of non-inheritors and non-home owners once they themselves need expensive care in old age. There will be no property to sell for them. Unless house prices drop drastically to become affordable everywhere before that point we will eventually end up with an ageing population with no way to pay for their care. Their offspring won’t be able to care for them as in the old days of multi-generational living, as they’ll still be working full time just to afford to rent a tiny shoebox flat or new build. If taxes are raised to cover the costs then that’s even less money for the younger ones to live off.

It’s a worrying prospect. I’m imagining vultures stepping forward with business plans for Dignitas clinics in the UK and the law changing to accommodate that......

I don't know anyone " waiting to inherit". I'm in my 30s and in the south east, every one I know has eventually managed to buy something, although several have achieved this by seriously downgrading expectations & being far worse off than parents etc. Eg one couple spent a while living with 2 toddlers in a one bed flat, several have opted to move to much cheaper areas of the UK, most have spent years living with parents while saving, some have gone for shared ownership