AIBU to be concerned about the housing market for the current and future generation?

[jagjagjagjaguar]

For both the rental and purchasing housing market?

This is not about me - I have, after many years of saving and skimping saved enough money for a deposit and seeing first hand, as a first time buyer and also as an estate agent, specialising in the rental market I am worried for many over the ever increasing costs associated with buying and also renting. I honestly think it is going to become increasingly more difficult for first time buyers to purchase a property as we continue over the next few years. It makes me question, what next?

Buying - in my recent hunt for a property, it has been like a piranha pool, houses selling in 1 day with multiple offers and way over the asking price. Within the last 2-3 years there has been a noticeable increase in property prices (North West), a family member purchased a house in 2018 for £252k, spent £20k on the property and has just sold it for £402k, this increase is HUGE. Prices in the area have plateaued recently but are still propped up high. Houses are becoming increasing unaffordable for many and the goal post for first time buyers and the amount that is needed to be saved for the deposit is spiraling. Even flats/apartments being built in the nearby city and surrounding areas are expensive and not always an easy alternative for first time buyers.

Rental Market - Again, another frenzy. We listed a 2 bed property yesterday and we received 45 calls in a matter of hours, with 8 offers submitted, neither had seen the property. Again, we are noticing rising prices in rent and it is not unusual to see a flat or apartment being rented for around £1000. How are people expected to save enough money for a deposit whilst paying so much money on rent?

Does anyone else share the same fears that I do for the current and future generations? I am concerned for my children, friends, family members, etc.

I do wonder whether over time, other large cities will develop and property prices reflect the trajectory that we have seen with London over the last decade.

That’s what happens when central governments print money. Asset price inflation. Can’t have it both ways, endless lockdowns, extensive furlough contributed to this. On another note, the houses being bought will still be there for future generations, especially now that everyone has to pay for homeowners care fees so they can leave inheritance for their children.

It's going to how it was pre mid 60s.

The working class had to live in extended families and even if they inherited a house it was full of multi generational living. The poorest rent awful cramped overcrowded accommodation.

You need to meet someone young, live at home, both work and save like mad, no car, no holidays delay having DC for a decade and have a cheap wedding - then you may get on the market.

@RandomMess you have listed most, if not all of the ways that we have been able to save for a deposit (we have not been able to afford a wedding) I am extremely grateful but I realise it is not an option for all or entirely sustainable. Many new houses and apartment blocks being built are small and cramped, it is going to be difficult for multi generational living when there isn't the same space. There is less available land so developers are building as many houses as possible in smaller areas so plots are not as spacious as they used to be - less space for leisure/ children in gardens etc.

It depends. We might end up with the population stagnating rather than growing (due to immigration being less attractive due to Brexit, people having less children etc). Plus at some point a lot of the current property owners will die and their children will benefit with inheritance so they will be able to move up/get on the ladder. More people WFH might see more standardised house prices across the county in the long term rather than a 5 bed detached in x area costing the same as a 1 bed studio flat in y area. Social expectations are already changing in that lots of young people live at home for longer - it might become the normal to have intergenerational living, as is common in lots of other houses. Alternatively as people are working a lot longer now (my grandad retired on his 50th birthday, father aged 59, I'm looking at at least 67 at the moment with nearly 40 years to go!) mortgages will probably get extended to longer terms, or even introduce multi-generational mortgages.

That of course doesn't make it 'fair.' It will still be hard for those without inheritances, or for single people to get on the ladder. We'll also probably have issues with the current housing stock in increasingly bad repair and not enough new houses being built.

intergenerational living common in lots of other countries, not houses that should say.

I come from an ordinary background and live in an ex mining town so not very posh. What seems to happen in my circle is that when grandparents pass away any inheritance goes to my generation who pass it to our adult children to get on the housing market. That’s what I and all of my friends have done.
Yes I know people will say what about care costs but actually very few people go into care homes. If I have to I have my own house to sell to cover these costs.
So no I don’t get all of the hysteria.

My parents were born in the early 40s to me they were the generation blip that benefited from improved living standards. They bought their first home before the massive house price rises in the 60s.

Dad retired early 50s, final salary pension with a golden handshake. Bought shares when public services were sold off.

I long ago realised that my standard of living would not be as good as theirs.