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Original poster

How can you save enough for a house when house prices keep getting higher?

247 replies

grannyinapram · 03/03/2021 09:30

when I moved out, house prices near my parents house were 90-100k
now those houses are £160-200k
I can't afford to live there anymore.

I live in a really horrible area, ex council houses are 130-140k We can almost afford it. BUT every time we get to that magic number, suddenly house prices go up and we have to save more. By the time we have saved more, we look again and house prices are up again.

Well our savings are worth less now than they were when I started saving.
When I started saving I needed £5000 (plus fees) to get a mortgage.
now I have 10k behind me but we still need £5000 to afford smaller houses than when we first started.

And our savings are just sat there losing money.
The interest paid this year is half of what was paid in last year, despite the amount doubling.
I don't know what to do! I don't know how to get there.

How do you get on the housing ladder when the ladder has been put on the back of a truck and is driving away from you?

any advice?
we are saving as much as we can. A third of our income goes into the savings.

OP posts:
MaskingForIt · 03/03/2021 09:34

Money in cash ISA usually loses value over time. You need it to be in a stocks and shares ISA for it to maintain its value.

BugsAndBeesAndBirdsAndButterfl · 03/03/2021 09:36

I think this is a real problem. Were the next stage on - I have a fairly basic house and had hoped to move up once we had kids hut esch year the gap to a better house has got bigger. Our house now is priced at the price we wanted to hiy the bigger house for about 10 years ago! We can't move.

Similalry Theres no way we could now have afforded to buy our basic house we live in if we were trying to buy now (if thatbmakes sense) so I really am aware that entering the market would be impossible for us if we hadn't already done so.

We are only just below average earnings too yet couldn't afford to buy an ex housing association house. It's all crackers.

BugsAndBeesAndBirdsAndButterfl · 03/03/2021 09:37

I didn't at all mean our problems the same (we will just stay in Tiny House). Just that I can conpletely see how hard it is for you.

EvilPea · 03/03/2021 09:38

You can’t, my area doubled in two years from 250k-500k as a result the knock on affect meant it only took 6 months for the entire surrounding area to do the same

The new 5% deposit mortgages might help you.

Too late for me though

EvilPea · 03/03/2021 09:38

You also can’t whilst rent costs rise as well.

RedMarauder · 03/03/2021 09:39

As a PP said you need to save in a stocks and shares ISA.

You also need to be more willing to live in different areas to get the type of house you want.

Original poster
grannyinapram · 03/03/2021 09:39

oh sorry, we have it in help to buy isas so the government top up every 200 saved in there with £50 but thats only after the house purchase, it can't be put towards the deposit. So its really like a help after you buy isa

I'm not really sure about stocks and shares, there was just a post on here the other day about a woman who's husband lost them thousands.
I wouldn't know what I was doing. I have watched YouTube videos and read "how to" articles before but I gave up because it seems too risky for an idiot like me. Ican't even keep up with the housing market, never mind stocks and shares Blush

OP posts:
ZoobyZoobyDoo · 03/03/2021 09:41

You’re right about stocks and shares ISAa OP, stock market is for money you can afford to lose.

Bookriddle · 03/03/2021 09:42

Luckily you can save, you will get there eventually !

I'm trapped in the renting world, I pay £1000 a month, my landlord puts the rent up every year because he knows I cant afford to move out and rent somewhere else

Original poster
grannyinapram · 03/03/2021 09:44

@BugsAndBeesAndBirdsAndButterfl

I think this is a real problem. Were the next stage on - I have a fairly basic house and had hoped to move up once we had kids hut esch year the gap to a better house has got bigger. Our house now is priced at the price we wanted to hiy the bigger house for about 10 years ago! We can't move.

Similalry Theres no way we could now have afforded to buy our basic house we live in if we were trying to buy now (if thatbmakes sense) so I really am aware that entering the market would be impossible for us if we hadn't already done so.

We are only just below average earnings too yet couldn't afford to buy an ex housing association house. It's all crackers.

This is why I am worried about buying a flat. We have viewed a flat the other day and it is so much smaller than the flat we have now. And with children i don't want to be moving them into an even more cramped situation. (ps that flat we viewed was the price of the houses that are now 180k how can it be?!)

I'm torn between getting my foot in, and getting stuck in.
I don't know what to do.

we are the only people in our family to even have savings. everyone else is just getting by or getting into debt so we have no experience with how to manage money ( I know its not a lot in the grand scheme but its a lot to us. its 5 years worth of savings!)

what if we buy a flat and house prices fall so we can't sell? then we are stuck in a flat with 4 children forever! I don't know what to do!

OP posts:
yoyo1234 · 03/03/2021 09:44

Sad I really worry about people trying to get suitable accommodation ( if trying to buy or rent) it is wrong that something as fundamental as housing is seen as an asset. It was so easy to see prices would rise with the ridiculous stamp duty holiday .

ThePricklySheep · 03/03/2021 09:44

Have you considered buying a smaller house or a flat? Then at least it will be gaining value.

ThePricklySheep · 03/03/2021 09:45

Ah, cross post.

ThePricklySheep · 03/03/2021 09:46

Maybe you plan to rent for now but slowly save enough to buy something small to retire into.

Original poster
grannyinapram · 03/03/2021 09:46

@ZoobyZoobyDoo

You’re right about stocks and shares ISAa OP, stock market is for money you can afford to lose.
yes. thank you. I will remember this next time someone tells me I'm being stupid with my tiny amount of precious savings 🤑🤑🤑
OP posts:
RichTeaCheddars · 03/03/2021 09:53

You just need to get on the housing ladder. Either a smaller place in your current area or a house in a cheaper area of the country. Then you'll own your own and what you pay in mortgage is going towards your home rather than similar amount in rent going to line the landlords pocket.

KL29 · 03/03/2021 09:59

Have you looked into shared ownership?

bingoitsadingo · 03/03/2021 10:03

It's so difficult. The recent stamp duty holiday has made me absolutely rage. Everyone I know who benefited from it are people who already owned property and were already planning to move somewhere larger - and then they got a nice tax break for doing so on a sale price that was already agreed.
Meanwhile it's disadvantaged first time buyers (who normally have a slight tax advantage) and pushed up prices for everyone else. So the real people benefiting are people with big houses who are downsizing, everyone else it has pushed up prices for.

Meanwhile interest rates are low because we can't let them rise because it will scupper things for people with huge mortgages. Savings interest is nil and the plan is likely to inflate away our covid debt which again will be at the expense of people with liquid assets who haven't yet managed to buy a house.

Feels like we're being fucked from every direction.

Original poster
grannyinapram · 03/03/2021 10:06

@KL29
yes! I have!
But The only shared ownership properties are £200k+ but the rent payments plus the mortgage payments are quoted high.
We, in theory, could afford it but there aren't any on the market at the moment.

We need to stay in a few certain areas due to DHs job.

OP posts:
Original poster
grannyinapram · 03/03/2021 10:10

@bingoitsadingo
I agree, I'm actually sore from being fucked over so much. Blush
Is that possibly why house prices have gone up so much this year? They have gone up easily 10-20k some even more.

OP posts:
Fuckadoodledoooo · 03/03/2021 10:11

We are trapped renting too.

We moved hundreds of miles to where Dh is originally from. It's an absolute shit hole to be honest, but house prices have shot up to £180k for a three bed (we have three children and an elderly parent who will need to live with us sooner or later). We'd never get a mortgage for that.

Rents have also risen £100/£150 a month in the year we've been here so now we can't save. It's depressing given that Dh has a really good job. It's just for a local authority so it pays peanuts.

SendMeHome · 03/03/2021 10:11

We went the “get on the ladder” route; and got a flat. I’ve loved living here but nobody wants flats now, with the cladding drama and people wanting more space incase there’s more lockdowns. We’ve got an incredible location, off street parking and a garden, and our valuation is still £30k off what it was last year, and most of the local estate agents are refusing to list flats as they just won’t sell.

I don’t think I’d move into one with four kids... I’d only move in to somewhere that I’d be okay to be for a while. We really want a two bed, so we can have an office/nursery, but we can’t sell, and prices are just going up. We feel pretty stuck.

Fuckadoodledoooo · 03/03/2021 10:12

Also, mortgage payments on £180k would be £150 less a month than we pay in rent. So we could afford to pay it, just can't get a mortgage for it. It's maddening.

Merryoldgoat · 03/03/2021 10:15

It’s an absolute shit show OP - I have zero
Idea how you do it without help. We bought 12 years ago with the help of PIL. We moved up into a house from a flat 6 years ago and there is no way on earth I’d be able to afford this house now - it’s gone up by a ridiculous about.

CallistoSol · 03/03/2021 10:17

House prices are completely insane atm and I think a serious correction is just around the corner. The temporary ending of stamp duty has created a bubble, I'm amazed anyone would want to buy right now, esp if you're maxing yourself out to do so. Hang in there op, prices will be coming down again.