Open borders have led to excessive demand for UK housing - people spotted this and realised they could "buy to let" additional houses, thereby diminishing the available housing stock dramatically and pushing house prices up. My sister-in-law (who is a bar worker, so not a big earner) now has four houses, three of which she rents out, and there are no doubt tens of thousands who have done the same. If we get border control, and economic migrants leave, that will greatly affect demand for rented housing, rents are likely to fall and house prices drop, making them more accessible to first-time buyers. Some will win, others will lose.....
When it comes to carney and brexit, he seems to be using Diane's calculator The bit about this that some often miss out, is that people in this position, often will not have been in this position till they are in the 50's, 60's and 70's. Most certainly were not able to do this in their younger days either, no matter what generation you are from. It's like a 20 year old saying to their grandparents, why can't I be in the same position as you grandma and the grandma replies, when you work for another 40 years, you will be too but the 20 year old saying but I want it now.
I'm one of those smug bastards with everything bought and paid for. The value of my house is irrelevant to me as I don't intend to sell it. I couldn't agree more with @I'm closing in when he says " we absolutely do not know what is coming." Enjoy every day (and night)!
A couple like us ... early 30s decent jobs, but both work in the public sector... we can't really afford to save for a deposit and pay rent. We are competing with people in the private sector earning a lot more for similar qualifications and experience, or people who have inheritance. If we wanted to save for a house we'd have to give up all non essential expenses including holidays and motorbikes (for me, she commutes on hers) for probably 5-10 years.
Bear in mind that houses are now used to pay for care in old age. No high equity equals large additional burden on taxpayer to make up the shortfall
It’s all about choice tho. I had no bike,s or holidays, or much social life while we saved our first deposit. The difference is, we needed 6k (I was only earning 15k, wife 10k) and rent was £400 pm. Where now you’d need 10k (FTB terrace house was 50k where now similar in my old town is 140k) and, the bigger killer, rent in a similar house would be £700 pm. So, I wonder what has pushed rental costs up disproportionately.....
Mine never either. They worked hard just to pay for their own house.To be honest, I also never expected them to, unlike a lot of millennials who want the world handed to them on a plate.
My first flat cost £23,000 along with my ex husband we saved and our wages accounted for our mortgage His 5x and mine 1x wage Cost around £129 a month back then late 80’s Same flat now is £100,000 and I would think £600+ for mortgage for my kids I can see them living with me forever
Rental is linked to the house price - Mortgage repayment Most BTL rent out to cover the mortgage + costs + small amount and rely on equity increasing long term as the return.. So the more expensive the house - the bigger the mortgage - the higher the rent needs to be..
My daughter - 22 - lives at home with her baby - pays nothing into house... and bitches that I wont buy her a house or give her a 20% deposit for one..... She does not see my money goes keeping the roof over her head.. while her money goes on socialising... bloody kids....
Rentals used to be do-ups. Now, perfectly good houses are bought at full market value (plus some occasionally) because returns are that strong. I have a 60% mortgage. House was £310k. Mortgage is £1200. To rent it would be £1600. Why/ Becaise BTL will max out lending so cost is higher. Irony is most renters could afford the same home for similar money to the rent they pay, even factoring in buildings insurance and some other charges. That needs fixing.
My lad is also 22, and just moved back in from uni. He cant wait to get out, doesn’t expect us to buy him anything and says he’s happy to rent forever as he may be transient for work. Not sure if that’s coz he knows we will anyway and, ultimately, it will all be his or he just isnt bothered.
Interest rates have been pushed down for the last 30 years to allow people to consume beyond their means. This has inflated asset prices stratospherically above fair value. This bond bull market has reached its end. Bond yields and corresponding mortgage interest rates will normalize. Expect asset prices to come down in the next several years.
