To think young/those in low paid jobs

[MiaMarshmallows]

Will now find it easier to buy their own properties despite the coronavirus situation? (Because of Rishi's plans)

Do you wnat to expand?

Want

??

If you are in a low paid job, then it will always be difficult to buy properties in most of the UK

I've Googled and I still have no idea?

No it’s a major issue in the uk, are you living under a rock?

Are you possibly referring to stamp duty/tax?

What plans?

No. Houses are ridiculously expensive. Tax is high. I’m on £25k as a teacher, but take away tax, national insurance, bills, pension, student loan... not a lot left. I’m young and worried I won’t be able to afford a house before I’m 30

Yes and No.

Yes, it will be easier for young people to get a mortgage under the new plans but it won't make any difference for those on low wages because they will still be on low wages won't they?

Nope

There is effectively a finite number of properties available - new homes aren't built at a rate that hugely affects supply.

So when there are 10 homes for sale and now instead of 12 buyers there are 15 who can get a mortgage, do you think the 15 buyers all get to buy a house or do 10 get a house same as before but now pay more for it due to more funds available and more competition?

Unless prices drastically reduce anyone on low wages wont get a mortgage at any point. Skint is skint.

What did RS plan in budget that would make buying property on low wage feasible?

We're relatively young and on a relatively low income.

Unless they give us a deposit there's no way we could afford to buy but that's fine. It would be nice but thankfully we have a half decent social housing property to fall back on.

No, people on low incomes still have to save up for a deposit. Very difficult when paying rent/bills/general life costs.

?

The 95% thing (I assume that's what you're talking about?) makes little difference to people on low incomes because it isn't the deposit that is the issue.

I could save e.g. a 10% (or even 15%) deposit (with an income in the lowest decile, i.e. poorest 10% of the population), but I would still never get a mortgage on that income. And all the while I'm saving, house prices are going up.

@CuteBear

No. Houses are ridiculously expensive. Tax is high. I’m on £25k as a teacher, but take away tax, national insurance, bills, pension, student loan... not a lot left. I’m young and worried I won’t be able to afford a house before I’m 30

Even with two salaries bigger than yours, we still couldn’t buy till I was 35! You’ve still got time - most mortgages are 25 year terms, and you’ll be working till you’re 67ish, so there is time. Just keep saving what you can, but don’t let worrying about buying stop you enjoying your life too.

Buying property isn’t everything. My best pal and her husband worked hard to pay off their mortgage early and denied themselves a lot in the process. He died suddenly last year at 53. She regrets many things they didn’t do, now, due to their focus on paying down the mortgage early.

Young people are far more likely to lose their jobs (likely to have less than 2 years' service). I'm 26 - I have friends who are on temporary contracts, one was on 6 month contract which has now become a monthly rolling contract. It will benefit high-earning, flashy spenders who haven't saved big deposits.

Surely for most it’s affordability that’s the issue.

A single person earning 25k will be able to lend what, 100k? If that? They might save a 10% deposit, giving them a budget of 110k. Can’t get much for that in most of the U.K....

@CuteBear

No. Houses are ridiculously expensive. Tax is high. I’m on £25k as a teacher, but take away tax, national insurance, bills, pension, student loan... not a lot left. I’m young and worried I won’t be able to afford a house before I’m 30

Buying a house in your 30s seems like a pretty normal age to me. I'd have thought that was about average for first time buyers?

I hope I can buy house within the next few years but I'll need to find a job first and that isn't looking promising.

No it's gonna be even harder.

Was looking at properties in an area we wanna move and prices have gone up by 30k in a year.

I sat there and cried.

A job that pays more than NMW that is.

Well given that mortgages are usually calculated by 4.5 times your annual wage the most I will be able to get is £79,000. Living in a commuter village to a nearby city, you want to to guess how many properties are available at that price or lower? I'll give you a clue, it's less than 1.

Nope, because the deposit is not the only problem. I'm sat here with sufficient deposit but unable to buy as I'm currently a student on stipend and despite my hubby earning a reasonable wage (at least double nmw) what the bank will lend us is not enough to buy a house. The 5% deposit scheme doesn't help those on low wages, as it's only part of the problem!