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?

If this were the case, how would you propose to fund social care? Councils are already struggling with funding it and a large proportion of council tax funds have to pay for it. Also you do realise that self-funders in care homes subsidise those who don't have any assets to pay?

Personally the security of your own roof is priceless and well worth the possibility that shock-horror I might have to actually pay for my own care. Also with good financial planning one can help one's children way before you're of an age of possibly needing care. We've done this, helping our child to buy a house in good time to avoid the possibility of being assessed as intentionally depriving ourselves of assets.

I wish the government would actually sort out this difficult question so everyone could have more certainty.

Just the stinky attitude towards certain people, nothing confusing.
I'm sure we all harbour some.

Having to opt for shared ownership is far from ideal but it’s nothing new. I remember a colleague buying his first house in 1986. The only way he could do it on his salary was to go 50/50 using the local council shared ownership scheme. He was mid 20s and the house was a tiny mid terrace facing a main line railway.

@Nothatgingerpirate why have you written such a horrible post in response to one which is simply stating facts that things will change in the housing market when the large generation of boomers gradually die. Dying is a fact of life. It's inevitable for all of us.

Can’t you see how rubbish that is for someone who wants to stay in the area they grew up? That shouldn’t be the solution.

I chose to raise my children in greater London, specifically the area I grew up, close to parents, aunts, cousins, etc. And just because I chose to work and earn money/buy a place it feels like I’m being penalised. I would struggle mentally if I moved somewhere cheaper and was isolated from all my family and friends.

Just the stinky attitude towards certain people, nothing confusing.

You need to reread the post…

It reminds me of the time I said recently Trump might win and some posters lambasted me for being a Trump fan! They are completely separate things 😆

All very well but if that property is too big for retirees to cope with due to health issues,or even without health or mobility issues,this along with a big garden etc, what then?

Well, there you go.
A Trump fan here.
😁

YANBU @Biggiebiggiecantuc
We have created a system where things are increasingly hard for young people. This has happened gradually over several decades and is having disastrous consequences. Things will inevitably change and in ways that most people don't expect at all.

@Nothatgingerpirate with the lack of comprehension with the earlier post I’ve got no idea if that’s a joke or not?!

She wasn’t wishing them dead! She was just stating that majority of that generation will die in next 20 years and it’s going to have an effect on house prices. Take it personally much? We all have people we love - and I know and love “baby boomers” who have no money or assets at all. I still get the point of the post.

Nice to hear your true feelings on Gen Z though, way to foster a community spirit 😅

I agree with you! I was on one of those post US election threads and also thought that Trump would win. I tried to point out some of the issues with the Democrats that has led to their loss and some also assumed that I was therefore a Trump fan! People just love to take offence nowadays and create division.

Oh, come on.
It's not a joke, why would it be?
Enjoy your Sunday!

People always say 'europe' rents, but home ownership rates vary from country to country in Europe and the UK isn't a massive outlier. There are bits of eyrope where home ownership is higher than the uk.

Germany in particular is known for its very secure rental properties and low rents, and they do have one of the lowest home ownership, but it's still 45% of people own their own home. We should look at how thier rent is better and try emulate it though.

I think a lot of people my age (50's) with equity will do what we are planning. Sell our family home and move somewhere smaller and cheaper and give money to DCs.

Surely this is logical? House doesn't get taken for care fees if needed and if done properly avoids IHT.

@rainingsnoring its depressing as I thought MNetters were meant to be educated. How on earth does saying it’s looking like Trump might win translate to I want him to win?!! 🤦‍♀️

What needs to happen is a radical change in how rented property is organised. In most European countries renting is not seen as the shameful failure that it seems to be in the UK. This is because most people are happy to long term rent well maintained, reasonably priced property . They aren’t faced with the threat of serial eviction, they know their children will be able to attend the same school without constant moving, they know the landlord has to maintain the property to a good standard.

We had this option for property rented through local authorities, but unfortunately we all know what happened to that valuable resource! Now the only way to return to decent rented property is to be a lot stricter with private landlords, limiting the rent increases, enforcing maintenance standards, offering people secure long term leases. Obviously to protect landlords there has to be provision for the minority of abusive tenants to be removed quickly and cheaply from properties, but I think it should be possible to get to a level of agreement where both a landlords investment is protected and a tenant has security and confidence in their lease.

Add to this a proper programme of building good quality LA housing in areas of need, particularly rural areas to support local communities then we could go a long way to sorting out housing need,

And the issue of funding self care is something that has to be addressed, maybe by returning to the proposal made some years ago about ringfencing some element of national insurance/ general taxation as is done in Germany I believe , to be used to fund future care needs in an ageing population.

This is OP’s first and only post. Lots of emotive language. Hasn’t come back.

How old are your DC? My DD is 18 months and we opened a savings account for her as soon as we registered her birth. We save monthly for her. We also opened a children's ISA for her which we put £1,000 into and pay in a small amount monthly. She won't be rolling in it but by the time she's 18 we're hopeful she'll have over £30k.

I think it's easier if you can start when they're young because small amounts really add up over time! X

No, not everyone will be mortgage free by 50, but the average age of a first time house buyer is 35, so with a standard 25 year mortgage, that’s done by 60. So still working age, then a good chunk of retirement with no rent or mortgage to pay before care home becomes an issue, and most people won’t need a care home so will be able to stay in their property. (Or sell to downsize/move to a better property for mobility issues).

the idea that there’s no point buying because it all goes on care home fees misses the gap from paying a mortgage until care home, not everyone needs a care home (also generally rent is more than a mortgage on the same sized property).

This is a bit of an urban myth - in Germany around 52% of the population rent, but that is still only around half. In France it is only 37% and in Spain only 25%. I see this trope of 'most people in Europe rent' trotted out time and time again and it's simply not true. Germany really is the only country where it's roughly half and half in other European countries home ownership is still very much alive and well.

There seems to be a real lack of critical thinking, an almost pathological ability to take offence and so many divisions in the population. I blame politicians and the media. They've done a 'great' job at creating these divisions to divert attention from their failings! I also find it depressing and worrying and hope that we can reverse these things in time.

At some point that generation will die and it will get handed down, minus things like care home fees and inheritence taxes.

I think people want to start higher up the ladder these days. Look at tiny studio flats and start there. You’ll be paying mortgage instead of rent so you can get to a place of having a much larger deposit sooner.

@Biggiebiggiecantuc I agree with you. One of my DCs moved over 100 miles away from London (after studying there) to buy a house with their partner. They both work for the NHS so their salaries go much further away from the SE. Their house cost less than half compared to similar properties anywhere within a reasonable commute to London. I’m amazed that anyone who works for the NHS or who teaches can afford to live in London. I’m assuming those who do so must have generous family support, get top up benefits or have a rich partner.