To wonder how the next generation will buy a house

[macaronitoni]

Surely there needs to be a massive overhaul of the system. A new build home with two bedrooms on a new development nearby is £315k. Not London. Midlands. Who’s going to be buying that? Too small for a family with more than one DC but way out of budget for most first time buyers.

Without significant family help, how will today’s children and young people manage to buy a house? Something has to change!

the "wealthiest" person in my friend group is someone who was given a large sum of money to buy a flat in the early 00s at 22. As pp said it's the compound effect as they have so much equity. They still have that flat rented out, their home & during lockdown bought a coastal holiday house.

Stealing (via taxation) is easier than earning and saving, I suppose.

Do you consider income tax to be stealing? Why shouldn't CGT be inline with income?

Because children of a widow can inherit up to £1m and not pay IHT yet children of a divorced woman will pay IHT on anything above 50k. That seems unfair to me, everyone should tax equally, regardless of their parents marital status.

Now I think about it, I guess such children might also inherit from their father so maybe things balance out then - but I doubt that it’s so simple.

Tbh, my children will have to stay at home until we'll into their 20s, saving hard to buy a home, that's if they go into fairly well paid careers.

Dd still lives at home even though she has a place. She rents that out and is on to her 2nd place
Some of her peers are still doing masters and will come out having to a start in a job paying what Dd was earning at. 18

Wrong again. A single person’s IHT allowance is £500k including a property, not £50k. And you’re right, most people with divorced parents will inherit from both estates. This is yet another whinge about single people coveting one of the very few benefits of marriage.

Inheritance tax allowance is £325k not £500k

And if one spouse leave everything to the other, when that second spouse dies, the allowance is retained, so the allowance becomes £650k on the second persons estate.
I know this to be the case because it happened with my grandparents.

It can increase to £500k if the estate contains a property which is being left to direct descendants. Having just made our wills, IHT allowances have become my specialist subject!

That’s interesting and worth knowing- we’re just about to update our wills.

Your solicitor will tell you all the ins and outs.

The UK population is still growing, it is not shrinking. It's the RATE of growth that may be declining.

sounds dreadful. She does not want her independence. I would be worried for her

No that’s actually really sensible of her and a good idea. I hadn’t thought of that as an option, I might encourage my DC to do the same when they’re adults.

It's unhealthy for the DC

Where my family come from it is normal to all live together

I grew up with aunties and uncles and their spouses and my cousins and grandparents in the same house and cooking one meal for everyone to eat together.
We laughed at the tv series Bread when that came on because everyone in my family, if you had earned money that day then it went into the centre of the table.

Everyone we knew did the same.

Most of dds friends who didn’t go to Uni haven’t moved out. Those that did and finished Uni have all moved back home.
Only those who have got married or are in a relationship with children have moved out.

It should not be this way, but it is due to high house prices, which a lot of members on here only want to go up

Multigenerational living is common in many places but houses are built for it.
I can't imagine sharing my 3 bed here with my family for more than holidays. Yet grew up with multigen houses. It's because usually they have designated floors

House prices will change. In the future economy people won't want huge older houses and will opt for passive insulated housing that is cheap to run.
There is only a housing market when there are buyers. If first time buyers can't afford to get on the first rung of the ladder then nobody else will be able to move on.
Perhaps a model similar to Germany will exist and 'home ownership' will not be a lifetime goal or aspiration.

You forgot to mention the avocados

Are you near Blythe valley op. I was looking at some new build on there and it was the same price. I'm 41 and still renting and starting to give up home myself

Hope not home

But it has always been this way.

Especially if your family live in London. Why rent when you can live for free or for very little money compared to renting.

Only people I knew growing up who left home and lived apart from their family but in the same town were those that got married, those that had children and were in a relationship or those that didn’t get on with their family.

If your dc didn’t go to university (which years ago very few people did) Then you would have adult dc at home to sometimes well into their 20s. It is only because a huge number of 18 years olds move out for Uni has it become the norm to live elsewhere

With regards to dd and those that she knows who are her age and not still at Uni. It just makes financial sense to keep their money in their own pockets as opposed to giving money to someone else for the privilege of living on their own and having a stack of bills each month and nothing after a few years to show for their work.

I grew up in a 2 bed 1box room council house with no bathroom an outside toilet. And no plaster on the walls where if the pointing fell out you could see the street outside through the brickwork. It was part of the slum clearance of the inner city

Living there were one set of grandparents, their 3 adult children, their spouses, myself and my only cousin at that time.

We were by no means the only family to live like this. We never even considered it was not the norm because that was what we were used to.

Yeah, the UK houses are not build for multigen living generally.