IFISAcava
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Post by IFISAcava on May 13, 2018 9:06:38 GMT
Repossessions were the highest ever in 1991 due to the problems then. Over 75,000 properties were repossessed, and many other people were forced sellers including some of my family and friends. That's true. Not everyone got through that difficult time. It must have been particularly difficult for those who had taken out their mortgages when rates were lower. Looking back I'm not quite sure how I managed. It wasn't sustainable that's for sure, but luckily rates started to fall within the next few years. Any Millennials who think the previous generation had it easier should try finding out what % of income people were paying when rates were 15%. Then again I doubt many boomers had the experience of millennials having to spend half their income on rent alone with no obvious escape route. Sorry but it's blindingly obvious that there's a housing crisis, and intergenerational argument about who had it worse doesn't solve it.
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dermot
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Post by dermot on May 13, 2018 9:10:30 GMT
If you have unused offstreet parking, create an account with JustPark or a similar company; the income I get from two spaces is the equivalent I'd get from £20K in more riskier P2P lending.
It does rely on living near places where people want to park, of course. If only my other half would let me dig up the flower borders and trees, I could easily quadruple that income.
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jlend
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Post by jlend on May 13, 2018 10:13:30 GMT
That's true. Not everyone got through that difficult time. It must have been particularly difficult for those who had taken out their mortgages when rates were lower. Looking back I'm not quite sure how I managed. It wasn't sustainable that's for sure, but luckily rates started to fall within the next few years. Any Millennials who think the previous generation had it easier should try finding out what % of income people were paying when rates were 15%. Then again I doubt many boomers had the experience of millennials having to spend half their income on rent alone with no obvious escape route. Sorry but it's blindingly obvious that there's a housing crisis, and intergenerational argument about who had it worse doesn't solve it. Agree 100%. Just to follow up, my post was just pointing out that many people struggled before when rates were high and i hope we never get back to that stage. With rates so low i think we may well have a problem if the base rate went up no where near 15%. I am glad that banks and the regulators are much more careful about how much they are lending people while rates have been low. Talk of lending people more money based on their income seems risky to me. I really dont know what the answer is to ensure wealth and income is spread more evenly going forward. It probably needs a whole host of government interventions but many may have unintended consequences. Looking at the definition i am just outside the baby boomers and have done well. It is like turkeys voting for xmas but i do think something needs to be done.
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cb25
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Post by cb25 on May 13, 2018 10:56:08 GMT
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Post by Deleted on May 13, 2018 10:58:52 GMT
The house prices you mention must be London ones, when you buy your first house you have to buy where you can afford and that may well mean that you need to find a job in a place other than London.
When I started out our generation were renting in London, but we didn't expect the nicest places and we re-configured our costs and expenditure to find the right inputs and outputs, our holidays, those we took were simple affairs, our food was seldom meat. Yes all sounds like Yorkshire millionaires but that is what it took. I didn't afford to go to a pub, I brewed my own beer (still have the kit somewhere) and we didn't have more than 7 changes of clothing in the house, take away food (havin a laugh)! I cycled to work because it was cheaper than driving or taking a bus (saved on gym membership)
Frugality is a difficult thing to learn but it sticks with you. I still take cycling holidays with the same bike some 35 years later. (well the same frame)
There is a problem in London of housing prices. I've seen London when housing was cheap and it was not a nice place to see. You may not like what you wish for.
I could well argue that housing can only be owned by a British citizen (EU citizen) or a transparent British company but I don't think it would change the price in the market place an iota. Too many people like Britain as a Bolt-hole, see also New Zealand, Vancouver etc etc.
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radar
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Post by radar on May 13, 2018 11:22:24 GMT
I believe it is wrong that in some areas houses are being used as offices, in deed some are whole streets of houses with no families living in them.
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snowmobile
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Post by snowmobile on May 13, 2018 11:25:36 GMT
That's true. Not everyone got through that difficult time. It must have been particularly difficult for those who had taken out their mortgages when rates were lower. Looking back I'm not quite sure how I managed. It wasn't sustainable that's for sure, but luckily rates started to fall within the next few years. Any Millennials who think the previous generation had it easier should try finding out what % of income people were paying when rates were 15%. Then again I doubt many boomers had the experience of millennials having to spend half their income on rent alone with no obvious escape route. Sorry but it's blindingly obvious that there's a housing crisis, and intergenerational argument about who had it worse doesn't solve it. I'm not denying there is a problem. As I said in my previous post I don't know what the answer is. None of us do. There are so many variables at play. Ultimately the generational wealth passed on by the boomers will help. The laws of supply and demand suggest it would probably sort itself out eventually. However that doesn't help the people trying to buy today and being unable to do so. I do feel sorry for the those having to pay out half their income in rent. My generation is the forgotten one in between the boomers and the millennials. I'm not trying to create an inter-generational argument. There is always a tendency to believe that earlier generations had it easier, whatever generation you come from. The previous generation did have issues, just different ones. I'm certainly not suggesting that the banks should lend more. Based upon the figures quoted earlier it seems that the lending multiple has edged towards 5, whereas it was a strict 3 when I first took out a mortgage. Even a relatively small rise in interest rates has the potential to cause a lot of problems.
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cb25
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Post by cb25 on May 13, 2018 11:26:08 GMT
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macq
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Post by macq on May 13, 2018 12:08:25 GMT
I am not sure how my dad bought the first house we lived in during the 50's which was in Tottenham but the second house was bought partly with the proceeds of compulsory purchase in 1967 or 68 a bit further out for the sum of £5000.This was due to what i imagine was the last large scale govt. building schemes where the roads we lived in were turned into an estate with tower blocks thrown up in other near by areas added to that you had new towns such as MK being built.Think its fair to say that the new towns may have worked up to a point but the estate and tower blocks did not so any plan now would have to be better considered. You also have the problem in this country unlike a lot of others of property being seen as an investment.Back in the 80's - 90's seemed when ever you met someone the conversation went- where do you live? followed by how much is it worth?And the selling of council housing by think it was Maggie with no rebuilding plan in place was another mistake But as Bobo & others have said years ago people had a different outlook.Our house in the 50's was your usual outside loo,coal fire etc but that was all they wanted along with a family.There was no frills if they wanted something in the furniture line it was not bought till they had the money so all overtime work was taken so not on credit,no holidays etc and in dire need there was the tally man.Even when they moved they did not get a washing machine till the mid 70's (felt posh when half a dozen neighbours came in to see the new twin tub) and the telly bought from the Co-op not hired from Radio rentals was a big step up! Yes people are struggling now but think in general people expect a lot more then just the house in terms of lifestyle which does not help the problem and before i'm called an old foggy  i needed my dads help for my first place and moved out of London for my second place as i could not afford anywhere.But a well thought out building plan and even possibly a return to more council housing would not go amiss.But as for money and the your not putting that there brigade - good luck |
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agent69
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Post by agent69 on May 13, 2018 12:32:34 GMT
Any Millennials who think the previous generation had it easier should try finding out what % of income people were paying when rates were 15%. The moaning of the younger generation does come across a bit like cake and eat it syndrome. I don't have a problem with them wanting free higher education and house prices the way they were 40 years ago, so long as they give up their mobile phones, Ipads, & internet access and everyone drives a beat up Mk 1 escort until they are 30.
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hazellend
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Post by hazellend on May 13, 2018 12:58:03 GMT
Any Millennials who think the previous generation had it easier should try finding out what % of income people were paying when rates were 15%. The moaning of the younger generation does come across a bit like cake and eat it syndrome. I don't have a problem with them wanting free higher education and house prices the way they were 40 years ago, so long as they give up their mobile phones, Ipads, & internet access and everyone drives a beat up Mk 1 escort until they are 30. you forgot smashed avocado. Ipads and avacados, that's why the young can't afford houses.
Being serious though, house prices look pretty affordable to me anywhere north of south England.
2 people on 20k could easily get a decent home in Glasgow and most of Scotland, and I presume most of north England as well.
Once you take London out of the equation, are houses really that expensive, or have I just got so much money now that I've lost touch with reality (just kidding, I don't have that much)?
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Post by lynnanthony on May 13, 2018 14:49:37 GMT
A few disjointed thoughts on the housing market:
The argument seems to go, houses are expensive therefore we must build more houses so that the price comes down.
Why do we actually need more houses? Beyond replacing existing stock? Because the population is increasing.
Why is the population increasing?
UK birthrate is 1.8. For the population to stand still it needs to be 2.1; 1.8 should give a 10% decrease in the population. (Lots of empty houses!)
But to counteract that we are living longer, life expectancy has gone from about 75 for men to about 80 in the last 25 years (very roughly) which should give us approximately a population increase of 6%. So the birth rate minus increased life expectancy still leaves us with a 4% population decrease.
Yet the population is undoubtedly increasing. Where is it coming from? Well, perhaps the major source is from (shhh!) immigration; coincidentally the thing that house-seeking millennials tend to be rather more in favour of generosity in than boomers?
(Arithmetic above is admittedly back of a fag packet. I am open to correction.)
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cb25
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Post by cb25 on May 13, 2018 14:56:17 GMT
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Post by Deleted on May 15, 2018 17:09:19 GMT
Living longer has by far the longer affect. Think of is person who died at 60 needs a house for 60 man years. If he lives to 80 he needs an extra 33% of man years house. Net migration affect is far smaller.
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TheDriver
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Post by TheDriver on May 15, 2018 19:42:54 GMT
Not really sure that argument stacks up:
Assuming it's true that life expectancy has increased by 5 years over the past 25, that means potentially 8% increase in housing needs over that time ie. 1% every 3 years, whereas the effect of 300,000 net immigration would be 1.5% over the same period.
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i needed my dads help for my first place and moved out of London for my second place as i could not afford anywhere.But a well thought out building plan and even possibly a return to more council housing would not go amiss.But as for money and the your not putting that there brigade - good luck