To worry how my children will buy a house

[Biggiebiggiecantuc]

I’ve been working in the head office of a large retail bank for the past 10 years.

I’ve worked with a bunch of slightly older colleagues who will blush when we discuss house prices. They mostly started working in the mid/ late 80s, after leaving school at 16/18, and were able to buy a property within 2-3 years of starting work.

Many have multiple BTLs and will head off into retirement in their late 50s with large final salary pensions.

I look at them with envy. I will need to find away to earn till I am in my 60s

However, I am terrified of what future my children will have. I jut don’t see how the will get into the property ladder. They, like me, are average. They won’t get into top city firms and earn £100k 2 years out of uni. Hopefully they will prove me wrong but I just see a future of misery, running just to stand still.

I have managed to save around £10k for them. A housing deposit. Is there anything else I should be doing to help them?

The issue I see time and time again is people as ftb’s want the forever home. They don’t want to start off in the grotty studio in a gritty neighbourhood. They want a 4 bed detached in a leafy suburb with good schools.

time and time again people seem to forget that FTBs are much older than they were in the best so often circumstances mean they need more space and schools because they are mid 30s rather than mid 20s.

Then the question has to be asked, why didn’t they buy in their mid 20s

A lot of dc’s peers (mid 20s) are buying their first home or have bought. I don’t think any have houses
All have started off in studios or 1 bedders mainly and one is buying a 2 bed flat in one of the cheapest areas out of London but still within commuting distance in.
There plan is to rent the room to a friend to help pay the mortgage.

I think a lot of people young and old don’t live in reality

Have you read anything about house prices vs salary ratio’s? And how higher housing costs means bigger deposits are needed? Probably has some impact on FtB age….

I said upthread 2 younger colleagues skipped the flat stage & went for a house, made far more economic sense for them. Also if you look at flat prices since Brexit they aren’t great, the climbing the ladder concept is pretty outdated now.

@Yalta Meanwhile, back in the real world.....

@WhatNoRaisins I believe this is what the current government is trying to remove.

Perhaps they didn't buy earlier because of current salary to price multiples and the fact that around half of young people now attend University, as a degree is a requirement for so many jobs that could previously be walked into with a couple of O levels if you were prepared to stay and work your way up. Just a thought!

It's really quite ironic that you accuse others of not living in reality.
Your DC and their friends may live to regret their choice to buy a London flat but time will tell as always.

yes! As I said upthread a studio flat near us is around £300k. But that’s no use at all if you want to start a family.

And aside from that the crippling stamp duty to move these days means it makes more sense to skip the first home entirely.

We bought in the early 2000s thinking we would upsize in a few years from our terrace but the combination of rampant house price growth and eye watering stamp duty for not much more space has led many of my generation to extend not move. So another consequence is not only are people staying in what were once starter homes for longer (20 years in our case), blocking them from younger people, but by extending they’re automatically in a higher price bracket than they once were when they are finally sold.

Honestly I was thinking of saving to buy a future first home for my baby. My DH thinks I'm being unreasonable...

At some point surely there will be a big house price crash, at least in the SE, presumably in about 20 years when the boomers pass on and nobody in gen x/millennial/gen z can afford the astronomical asking prices on these properties? Their children will inherit but inheritance is usually split 2-3 ways and that's after tax and care home fees etc, so not many people will actually take on the same wealth their parents had, to be able to spend over a million on an average house in the south east?

I think it’s really really tough and I hope the new government help the younger generation to buy. However, I think it’s a bit of a myth that the majority of the older generation all bought shortly after earning. Everyone I know who bought in the early naughties was in their 30’s and had saved for ten years more. Interest rates were 6-8% and my mortgage in 2001 was £860 and I was on less than 30k pa. It took another 2/3 years to save for repairs and furniture. I ‘camped’ in my flat for at least a year.

yes! As I said upthread a studio flat near us is around £300k. But that’s no use at all if you want to start a family.

You can get one for £120k where I live.

That’s nice for you.

Can you link this studio apartment? I’m curious as to where in the country this is.

north London. Loads of them.

Where in particular though?

Why? Do you want to buy it? You could just google - I don’t need to share my exact address surely?

First one I’ve come across in North London on rightmove is a 2 bedroom apartment, so not exactly a studio.

https://www.rightmove.co.uk/properties/153163583#/?channel=RES_BUY

What age are the ftbs that you are referring to? The average age of a ftb now is 37 (I think) so they have every right to look at family homes because they likely have a family or are starting a family at this point.

My OH are mid 30s. We were very fortunate in that we were able to get onto the property ladder aged 26 and that was a teeny tiny 2 up, 2 down. But this wasn’t the norm in our friendship circle. We have a much bigger home now, but many people these days can’t afford to get onto the property ladder in their 20s sadly.

Never said I wanted your exact address, but if you are claiming a studio is £300k it would be interesting to see what suburb of London this is, I’m sure you will remain anonymous……

Well here you go then. Take your pick.

www.onthemarket.com/for-sale/studio/north-london/?gad_source=1&gbraid=0AAAAAqpRXFtycbGfOi1A7A9Su7rw6z4eV&gclid=Cj0KCQiA6Ou5BhCrARIsAPoTxrDqQYz4_8tdrHfxXhpuDlAzLsodoG4pWLG7VlQwLuuWowgQ1MkgHwcaAg3BEALw_wcB

plan is to rent the room to a friend to help pay the mortgage.

So how is that friend going to buy something?

Are you having a laugh? The first property is Primrose Hill!, Are you seriously complaining you can’t afford a property in Primrose Hill? The entitlement! 😂😂

www.rightmove.co.uk/properties/149403101#/?channel=RES_BUY

Stoke Newington, for crying out loud! It was probably worth about £50K 20 years ago.

Eh? I didn’t particularly want to go too accurate so I put in studios north London. They’re all over the shop. There’s still five page of studio apartments on at around £300k or more. I’m just perplexed why you seemed to want to do some sort of gotcha on me as if I was lying. £300k for a studio isn’t a hens tooth is all I’m saying

I live no where near Primrose Hill for the record.

Here it is. £130k not £120k.

https://www.rightmove.co.uk/properties/142505630#/?channel=RES_BUY