So, how is it actually possible for our adult kids to ever move out of home?

[cateringday]

I’m imagining it’s the same for a lot of people.
two kids 20 and 18, they both actually have £10000 in the bank as an inheritance but can’t see how they would ever get enough for a deposit or pay a mortgage. If they rent then all that money will be gone anyway.

how old are kids leaving home these days

we live in the south east

Yep, this is me, left home at 16 in the 90s, and only just now in my 40s can I buy.

I got a mortgage on 10k deposit last year so it can be done. Interest rates are also coming down so they wouldn't need to earn as much as I did to get the same mortgage

Well do they work? I think you need to progress a little now to afford housing and buy with a partner or friends.
Parents help with deposits there are springboard mortgages. My parents took a 100k loan out on their house which my sister pays back on top of her mortgage.
There is help to buy and the help to buy isas which will increase their savings, look into putting the inheritence into a help to buy isa.
Then work way up in a job and buy something cheap in an up and coming area.

Why do so many posters not really how much the rental landscape has changed?!

Parents help with deposits there are springboard mortgages. My parents took a 100k loan out on their house which my sister pays back on top of her mortgage.

Lots of parents aren’t in the position to do this though, many are still renters.

I am finally leaving the south east in the summer and can finally buy, encouraging my young adults to do the same. Its impossible.

The things that still apply today are to share, I lived in a house with 3 other people, or you end up coupled up and share. I also retrained. The issue with being unmotivated is a big one in any generation.

It is also who you know, I passed on my son’s GF CV to my friend and it got her a decent starting job in admin. They broke up over a year ago but I know she is doing very well as my friend is still manger there and she is now in charge of her own direct accounts with major sporting venues. Ds worked from 13, only a paper round but it gave him a ref, then Kitchen porter in 6th form which was via another friend of mine, freight handler and then a degree apprenticeship.

She needs to get preferably another paid PT job or any voluntary role or multiple voluntary roles.

@Smowk I have two friends that recruit and they say the same. One of my friends prefers not to employ graduates.

Ds worked from 13, only a paper round but it gave him a ref, then Kitchen porter in 6th form which was via another friend of mine, freight handler and then a degree apprenticeship

I had a paper round at 14 too but it’s not such. thing anymore.

Has she though?

Or has she also done the hard yards of working long hours? And living in a crappy flat rental. And saving money. And dealing with 12% interest rate on a mortgage? Most people have done hard stuff. If she's past retirement age, it's possible that you've not registered the hard stuff because you either weren't here or you were a little kid.

my parents shared a bathroom and kitchen with other lodgers in their first rental. There was no living room - just their bedroom. I've seen pictures of it. Well, only one picture! That was long before I was born.

Hey @cateringday I think this is a worry for lots of parents. Before we married, my parents kindly said we could live at home as a couple. We paid a small amount of board money (£400) monthly and then worked and saved like crazy for about 4 years for a decent deposit. We took on jobs that we didn’t like/want, nights, working away, 4 jobs between the two of us at one point. Cheap hols (friends/family, caravans, newspaper deals etc). Savings add up if you are frugal. We ‘left home’ at 24 and bought a three bed. First few years of our mortgage was a pinch and we just cut our cloth accordingly and if we couldn’t afford it, we didn’t have it as long as our bills were paid.

Suppose they use their £10k as a 10% deposit on a mortgage then, according to Rightmove there are 446 properties at £100k or less within 40 miles of Bristol. Mortgage would be about £370pcm.

Basically thousands of properties across the UK they could afford IF they can cut the apron strings of living with mummy and complaining that life is unfair and start making their own life somewhere. Or they can whinge on MN? The choice is theirs.

They want the latest everything and the best first property when actually a phone is a phone and a car is a car and it doesn't matter if your first property is a studio flat.

Well it does if your studio flat has a huge increase in leasehold charges!

It was a good few years ago now but I left home for good at 23. In some ways we were very lucky. We rented for a long time, some of that time from family who gave us an excellent deal on well below market value rent, which added to inheritance and help to buy ISA meaning we could save to buy a house. I know others don't have that option, maybe suggest they drip their into a HTB ISA, thats get I did. We also waited to have our house we married, so many people spend a fortune on a wedding, have kids and can never afford to save enough for a house.

Most of my friends have children older than mine, so aged 25-35. They all moved out eventually after uni into flat shares. Nothing posh, nothing rancid and mouldy either. Eventually saved up enough to put deposits down on flats with partners or siblings. Most have a tiny bit of inheritance - 10-20k from grandparents - by the time they were about 30, in addition to the savings, so explored buying around that age, but not sooner.

Nowhere as easy as when I bought my first flat alone at 28 on a city secretary’s salary or my DH when he bought his. But I’ve just checked and the flat he bought is now on the market for 6x what he paid for it back then. No way could he buy it at the same age on the comparable salary today.

Our kids will get money from us when we downsize in the near future. Releasing that money early moves it out of inheritance liability and will get them started. We consciously will not be staying in the family home until we die precisely because it is the only way to help get them on the ladder and ensure our ‘estate’ [LOL] isn’t all given to the taxman upon our deaths.

And dealing with 12% interest rate on a mortgage?

What was the mortgage amount?

A single person in the South East has no chance of owning anything without a huge deposit and huge salary.

A 40k salary would only get you 160k mortgage. To buy an average 2 bed flat in my town you'd be looking at £250k plus.

I'd hate to be looking at buying now, it was bad enough 8 years ago when I separated from my exh. My first flat was £112k back in 2009.

I also think it's why a lot of people stay in really shit relationships because if they leave they won't get on the property ladder again.

ETA moving towns isn't always possible when you add in commuting costs.

@cateringday Im not even young now but I and virtually all my friends only bought with help. Either cash gift (some very significant) or saving at home or combo.

I am preparing myself for the likelihood that my 9 year old daughter will live with me forever. It wouldn't be so bad...

ETA moving towns isn't always possible when you add in commuting costs.

Another thing people forget. We decided to stay in London as commuting costs were ££££

It hasn't really changed in my opinion. I've been renting since the 90s, its still the same as it always has been except now you have more protections.

so many people spend a fortune on a wedding, have kids and can never afford to save enough for a house

I suppose they think they can’t wait forever to have dc. Although lots of young people have stopped having dc

FFS it isn't about cutting the apron strings. 🙄 if their jobs are in London/South East living in Bristol isn't an option, they'd end up spending a fortune in commuting costs.

My autistic child struggled at uni, she spent her whole second year applying for jobs so that she could quit and work instead. She had no luck, not even interviews, until she applied for a supermarket via the apprenticeship route. The apprenticeship was a much lower level than she had studied at, but that got her into a full time supermarket role at normal wage, not the very low apprentice wage. That pays enough for her to live in a HMO (has her own en-suite, just shares the kitchen), and is a similar standard to uni accommodation. Costs £700 per month including bills, so she has £800 left each month. She is saving £500 every month, so it will take her a long time but eventually she will have some money saved up. I think the only option now for single/low waged people are these HMO/house shares, and 5-10 years to save a small deposit. It's a shame it is so hard now with ridiculous house prices, but there is hope to save eventually.

LISA is definitely the way to go - not having one if your ambition is to buy eventually is just plain stupid! Even if you can only stick £50 a month in it, its still an extra £150 a year free money!

My 18 year old didn't get an inheritance but got a similar amount through her Child Trust Fund - she is putting £4k into a LISA this year and will try to put as much of the £4k yearly allowance away as she can (she's going to be looking for an apprenticeship rather than uni when she's finished college though).

She wants to try and buy something by the time she is 25. If she manages to put the money away in her LISA she will have £35k plus interest as a deposit on her own, obviously more if she is still with her BF.

In the meantime, she will either stay at home or move into a shared house with her BF after he has finished his first year at uni. She will be holding onto her evening / weekend part time job as well as doing her apprenticeship to maximise her earnings.

We live in the SW and in a fairly expensive tourist area. I have an adult son with 10K in savings. He works full time and earns £25k so not a massive amount.

A small 2 bed here is 200-250K, he needs 25K saved for a deposit. I have spoken with him about this and said I recommend that he saves whilst living here on minimal rent. I advised him to never rent as he would never have a penny to save.

He's 21 currently and I expect that he will have enough for his own property in 5 years time potentially with his girlfriend who earns the same.

A monthly payment on the above property size would be in the region of £800-£900 a month. A rental of that size is approx £1000-£1200 here, so it makes no sense to ever rent.

He is seeing the next 5 years as time to have fun and travel with minimal bills but he will have no problem saving the rest of his deposit.

It is achievable in my opinion.