To worry how the next generation will afford homes with 20% deposits

[vkocy]

Now 20% deposits are apparently the norm, how on earth will anyone save that much??

Why are 100% mortgages allowed? If someone can prove they've always paid their rent then they will be able to pay a mortgage which will be less!

@AdelaidePlace This would have been a ridiculous suggestion pre covid as needing work pushes young people to overcrowded hubs. Post covid and with remote working, things could change the way you are suggesting

Thanks, let's hope. One of mine has bought his own house in such an area, 19 and a home owner after completing his apprenticeship. It might not be where I would have chosen for him to live but it is an investment and cheaper than him renting.

In some European countries you need to have about 33% deposit, to cover, at least, the additional costs such as estate agent, lawyer, land registry etc.
When interest rates were high, you could save into a specific account, where you were then automatically able to borrow 66% of what you had saved.

We had to save 18.5% all in all and that doesnt include all the architect and legal fees etc. that we had to pay on top of it.
It was really hard and took years to get to where we are with it.

YANBU

It seems to be getting harder & harder to buy property now as FTBs (unless you have a lump sum/trust fund on the go!)

They will afford them in 30s and 40s much like most of Europe

This isn't the first time large deposits have been required, it will relax again over time if concerns about the property market crashing start to reduce.

20% used to be typical, and you could only borrow about 3-4 times salary.
There's a lovely couple down the road who talk about how they saved up to have £20 for the deposit to buy their house for £100 in 1936. It's now worth £500k. That sounds like they've done well, but saving that £20 was a real struggle, not a "oh we won't get a new phone this year" level struggle, we're talking about huge sacrifices for a number of years.

If they'd kept to that, fewer people would own homes, but also house prices wouldn't be as high as they are now.

Myself and my husband have saved for 3 years in order to purchase our first home together. I understand a lot of people consider this to be very difficult in these times but we have foregone most nights out/meals out and generally all unnecessary money spending for this time in order to be able to buy our new home. We are mid 20s and quite a lot of our friends have instead chosen to go out every weekend and are the ones moaning about not having enough money for a deposit Its a very hard climate at the minute but it can be done!

The Government have just launched a white paper to make planning easier to build more houses so young people can buy their own homes. No point if they are paying high rents and can't save a 20% deposit.

It's crap. We need a 15% deposit, so to get a standard 3 bed family home around here, we need 30K. We've saved £15k and the rest is help from parents.
Starter flats around here are cheap but if you want to move up to a family house it's a big jump. Don't know how anyone does it without family help.