What policy can actually young people own a home?

Watch this thread
username2837176
Badges: 15
Rep:
? You'll earn badges for being active around the site. Rep gems come when your posts are rated by other community members.
#1
Report Thread starter 4 years ago
#1
What does the govt need to do to help young people onto the property ladder?

Offer housing at a significant discount?

We know help to buy only benefits middle class and developments.

How can the govt help young people from poor backgrounds?

Perhaps right to buy is a good idea. Giving social tenants discount to buy their homes. Giving them the security for life.
0
reply
paul514
Badges: 21
Rep:
? You'll earn badges for being active around the site. Rep gems come when your posts are rated by other community members.
#2
Report 4 years ago
#2
(Original post by mattymoo432)
What does the govt need to do to help young people onto the property ladder?

Offer housing at a significant discount?

We know help to buy only benefits middle class and developments.

How can the govt help young people from poor backgrounds?

Perhaps right to buy is a good idea. Giving social tenants discount to buy their homes. Giving them the security for life.
Mass council house building
0
reply
Just my opinion
Badges: 20
Rep:
? You'll earn badges for being active around the site. Rep gems come when your posts are rated by other community members.
#3
Report 4 years ago
#3
(Original post by paul514)
Mass council house building
Spot on. It will drive down house prices at the bottom end where most young buyers are looking to get on the ladder.
1
reply
Wired_1800
Badges: 20
Rep:
? You'll earn badges for being active around the site. Rep gems come when your posts are rated by other community members.
#4
Report 4 years ago
#4
(Original post by mattymoo432)
What does the govt need to do to help young people onto the property ladder?

Offer housing at a significant discount?

We know help to buy only benefits middle class and developments.

How can the govt help young people from poor backgrounds?

Perhaps right to buy is a good idea. Giving social tenants discount to buy their homes. Giving them the security for life.
1. Freeze the purchase of homes by foreign buyers for about 5-10 years.

2. Commit to building 1,000,000 cheap homes around the country. Give building companies incentives by either issuing tax breaks or a public-private partnership with them until they get their money back.

3. Ban the purchase of another home by a couple, who already own one home. To buy a new one, they must sell off the old one.

4. Prohibit the use of vacant or ghost houses, where people own a home but live somewhere else.

5. Prohibit the sale of social housing to landlords or housing estate firms, who would profit from exorbitant rents.

There are many more, but this would be my first 5.
2
reply
username1799249
Badges: 19
Rep:
? You'll earn badges for being active around the site. Rep gems come when your posts are rated by other community members.
#5
Report 4 years ago
#5
More houses will help. But driving house prices down doesn't really help the bigger picture. In most places house prices simply reflect the buying power of two professional people living together. I do think young folks need to accept that the idea of owning a home for one never really existed. It didn't when I graduated 20 years ago.

I would also like to see regulation in the rental market and the introduction of long term tenacies.
0
reply
paul514
Badges: 21
Rep:
? You'll earn badges for being active around the site. Rep gems come when your posts are rated by other community members.
#6
Report 4 years ago
#6
(Original post by ByEeek)
More houses will help. But driving house prices down doesn't really help the bigger picture. In most places house prices simply reflect the buying power of two professional people living together. I do think young folks need to accept that the idea of owning a home for one never really existed. It didn't when I graduated 20 years ago.

I would also like to see regulation in the rental market and the introduction of long term tenacies.
It bloody did exist!
1
reply
paul514
Badges: 21
Rep:
? You'll earn badges for being active around the site. Rep gems come when your posts are rated by other community members.
#7
Report 4 years ago
#7
(Original post by Just my opinion)
Spot on. It will drive down house prices at the bottom end where most young buyers are looking to get on the ladder.
Yep amongst other benefits, the other suggestions on here since seem loopy and complicated for no reason
0
reply
username1799249
Badges: 19
Rep:
? You'll earn badges for being active around the site. Rep gems come when your posts are rated by other community members.
#8
Report 4 years ago
#8
(Original post by paul514)
It bloody did exist!
Did it? My first job in 2000 paid me £19k in Northampton. A modest two-up two-down was around £80k. Unaffordable to me at the time although the banks would have happily lent me a 120% mortgage.

Just done a career change. I earn £23k. My wife earns £25k. We could easily afford a family home in the leafy suburbs of Manchester where we live now.

However I think it is telling that the young folks prioritise their spending differently to me. In a training session (of mostly graduates) we were posed a scenario where work was building up, the car had broken down and there was no food in the fridge. All on my table stated they would get an Uber and a takeaway. Me? I would have walked, bought some pasta and a can of tomatoes from the shop and cooked. I would have saved over £15 in the process. £15 that would have happily gone towards the deposit young folks apparently can't afford to save up for.

Buying a house is hard regardless of which generation you are. Always has been. It is just that expectations seem to have changed where everyone feels they have some given right to own a house regardless of the circumstances. That has never been the case. If you were on the minimum wage 20 years ago, you couldn't afford a house. Or 30 years or 40 years ago. The only main difference is that 40 years ago, you could rent a family home on the minimum wage. But the Tories put and end to that by selling off all the housing stock to investers.
2
reply
paul514
Badges: 21
Rep:
? You'll earn badges for being active around the site. Rep gems come when your posts are rated by other community members.
#9
Report 4 years ago
#9
(Original post by ByEeek)
Did it? My first job in 2000 paid me £19k in Northampton. A modest two-up two-down was around £80k. Unaffordable to me at the time although the banks would have happily lent me a 120% mortgage.

Just done a career change. I earn £23k. My wife earns £25k. We could easily afford a family home in the leafy suburbs of Manchester where we live now.

However I think it is telling that the young folks prioritise their spending differently to me. In a training session (of mostly graduates) we were posed a scenario where work was building up, the car had broken down and there was no food in the fridge. All on my table stated they would get an Uber and a takeaway. Me? I would have walked, bought some pasta and a can of tomatoes from the shop and cooked. I would have saved over £15 in the process. £15 that would have happily gone towards the deposit young folks apparently can't afford to save up for.

Buying a house is hard regardless of which generation you are. Always has been. It is just that expectations seem to have changed where everyone feels they have some given right to own a house regardless of the circumstances. That has never been the case. If you were on the minimum wage 20 years ago, you couldn't afford a house. Or 30 years or 40 years ago. The only main difference is that 40 years ago, you could rent a family home on the minimum wage. But the Tories put and end to that by selling off all the housing stock to investers.
That argument only holds up when wages keep pace with prices which they haven’t at all
0
reply
username1799249
Badges: 19
Rep:
? You'll earn badges for being active around the site. Rep gems come when your posts are rated by other community members.
#10
Report 4 years ago
#10
(Original post by paul514)
That argument only holds up when wages keep pace with prices which they haven’t at all
Agreed. But it does make sense. In the 80s mortgages were deregulated. When my parents were buying their first house the woman's income was not taken into account. This pegged prices to the salary of the main bread winner. Then we had the economic crash and high interests of the 90s which knobbled the housing market. After that there was a massive sustained period of house price increases where all that happened was that house prices rose from that afforded by one professional income to that of two professional incomes. The average house price UK wide is around £230k. Two people earning £30k each can easily afford to buy a starter home at around £150k and the £230k house comes into reach after about 5 years of paying down a mortgage and increased wages / savings.

But the idea that a singleton can leave uni, get a grad job at £23k and buy a home, where as not unachievable is not realistic for most.
0
reply
RogerOxon
Badges: 21
Rep:
? You'll earn badges for being active around the site. Rep gems come when your posts are rated by other community members.
#11
Report 4 years ago
#11
(Original post by mattymoo432)
What does the govt need to do to help young people onto the property ladder?
It's simply supply and demand. People can change the demand side by moving, either to cheaper areas or to other countries (I did, but for other reasons).

The government could allow more house building, but there are many that do not want a drop in house prices. There's also the issue of what type of housing is needed - high density flats are easy to supply, nice houses with a decent garden, less so.

Perhaps right to buy is a good idea. Giving social tenants discount to buy their homes. Giving them the security for life.
No. I used to live on the outskirts of Paris. It was somewhat annoying to see the 'poor' being given flats that I simply could not afford to rent.

If the supply to demand issue isn't modified, any policy is just changing who gets the houses. Owning a house isn't a right - it may have advantages for society, but some people rent all their life. People in some other countries buy later in life than those in the UK. The British have an obsession with owning a home as young as possible - it's not really needed.
0
reply
hannah00
Badges: 18
Rep:
? You'll earn badges for being active around the site. Rep gems come when your posts are rated by other community members.
#12
Report 4 years ago
#12
If you earn 26, the average graduate salary

You can easily afford to a mortgage of 120k to buy a one bedroom apartment


What councils need to do is stop giving planning permission to apartments that cost 160k+.



As for london, basically impossible. 7 billion people on earth, at least a million millionaires, all of whom want to own at least some property is new york, london and paris
0
reply
paul514
Badges: 21
Rep:
? You'll earn badges for being active around the site. Rep gems come when your posts are rated by other community members.
#13
Report 4 years ago
#13
(Original post by ByEeek)
Agreed. But it does make sense. In the 80s mortgages were deregulated. When my parents were buying their first house the woman's income was not taken into account. This pegged prices to the salary of the main bread winner. Then we had the economic crash and high interests of the 90s which knobbled the housing market. After that there was a massive sustained period of house price increases where all that happened was that house prices rose from that afforded by one professional income to that of two professional incomes. The average house price UK wide is around £230k. Two people earning £30k each can easily afford to buy a starter home at around £150k and the £230k house comes into reach after about 5 years of paying down a mortgage and increased wages / savings.

But the idea that a singleton can leave uni, get a grad job at £23k and buy a home, where as not unachievable is not realistic for most.
It’s unrealistic because the price has risen so much and the wages of university leavers hasn’t risen.

This really isn’t complicated.

People used to be able to do this and they can’t now, it’s all supply and demand.

Way too many people go to university and the demand isn’t there for that. Low wages

No where near enough houses built. High demand.

One pushes wages down and the other house prices up.
0
reply
Drewski
Badges: 19
Rep:
? You'll earn badges for being active around the site. Rep gems come when your posts are rated by other community members.
#14
Report 4 years ago
#14
(Original post by hannah00)
If you earn 26, the average graduate salary
You can easily afford to a mortgage of 120k to buy a one bedroom apartment
The mortgage, sure.

But the deposit?

Think again.
0
reply
hannah00
Badges: 18
Rep:
? You'll earn badges for being active around the site. Rep gems come when your posts are rated by other community members.
#15
Report 4 years ago
#15
(Original post by Drewski)
The mortgage, sure.

But the deposit?

Think again.
10k, deposit works out to be 2.5 a year.

If you graduate at age 21, by 25 you should have enough for a deposit.
0
reply
hannah00
Badges: 18
Rep:
? You'll earn badges for being active around the site. Rep gems come when your posts are rated by other community members.
#16
Report 4 years ago
#16
(Original post by paul514)
It’s unrealistic because the price has risen so much and the wages of university leavers hasn’t risen.

This really isn’t complicated.

People used to be able to do this and they can’t now, it’s all supply and demand.

Way too many people go to university and the demand isn’t there for that. Low wages

No where near enough houses built. High demand.

One pushes wages down and the other house prices up.
When my dad graduated, the big4 used to pay overtime at 2x.

In america and much of europe, you start of on a decent salary from day 1.

In the UK they pay a entry level salary for 3 years, paying the same as any admin job you could get at a school or the nhs.

Graduates are also loosing jobs to apprentices increasingly
0
reply
-Eirlys-
Badges: 21
Rep:
? You'll earn badges for being active around the site. Rep gems come when your posts are rated by other community members.
#17
Report 4 years ago
#17
There's help to buy ISAs and lifetime ISAs available which reduces the deposit amount.
Having supportive parents who let you live with them whilst you work (and maybe study) and save up your money for a deposit is a big help. Kids who get chucked out by their parents have little hope when all their money is spent on rent for a *****y house, just to keep them going.

(Original post by mattymoo432)
What does the govt need to do to help young people onto the property ladder?

Offer housing at a significant discount?

We know help to buy only benefits middle class and developments.

How can the govt help young people from poor backgrounds?

Perhaps right to buy is a good idea. Giving social tenants discount to buy their homes. Giving them the security for life.
0
reply
uberteknik
Badges: 21
Rep:
? You'll earn badges for being active around the site. Rep gems come when your posts are rated by other community members.
#18
Report 4 years ago
#18
(Original post by ByEeek)
Agreed. But it does make sense. In the 80s mortgages were deregulated. When my parents were buying their first house the woman's income was not taken into account.

BS. The general rule for lending in the very early to mid 80's was 2.5x higher earner salary + 1x lower earner salary. Maximum LTV was around 90%.

A typical 1 bedroom converted maisonette would be around £20K in NW London with 3 bedroom semi's around £35K.

Average workers earned around £7 to 8K per annum.

Meaning it was easily possible for an average wage worker in a factory or semi-skilled job to earn enough for a starter home in the London suburbs.
1
reply
username1799249
Badges: 19
Rep:
? You'll earn badges for being active around the site. Rep gems come when your posts are rated by other community members.
#19
Report 4 years ago
#19
(Original post by uberteknik)
BS. The general rule for lending in the very early to mid 80's was 2.5x higher earner salary + 1x lower earner salary. Maximum LTV was around 90%.

A typical 1 bedroom converted maisonette would be around £20K in NW London with 3 bedroom semi's around £35K.

Average workers earned around £7 to 8K per annum.

Meaning it was easily possible for an average wage worker in a factory or semi-skilled job to earn enough for a starter home in the London suburbs.
So if that is the case, why wasn't everyone buying houses like there was no tomorrow? Or was it a small matter of high interest rates? I seem to remember my first savings account paying 6.5% - and that was just a random savings account in my local bank.

It is somewhat ironic that the mortgage on our first house we bought for £135k in 2008 at 6.02% was more expensive than the mortgage on our £230k house 9 years later.
0
reply
paul514
Badges: 21
Rep:
? You'll earn badges for being active around the site. Rep gems come when your posts are rated by other community members.
#20
Report 4 years ago
#20
(Original post by ByEeek)
So if that is the case, why wasn't everyone buying houses like there was no tomorrow? Or was it a small matter of high interest rates? I seem to remember my first savings account paying 6.5% - and that was just a random savings account in my local bank.

It is somewhat ironic that the mortgage on our first house we bought for £135k in 2008 at 6.02% was more expensive than the mortgage on our £230k house 9 years later.
They weren’t buying them like no tomorrow as they didn’t know what was about to happen to prices.

6% is also a good rate, it’s the rates now that are outrageous because of the crash
0
reply
X

Quick Reply

Attached files
Write a reply...
Reply
new posts
Back
to top
Latest
My Feed

See more of what you like on
The Student Room

You can personalise what you see on TSR. Tell us a little about yourself to get started.

Personalise

How did your AQA GCSE English Language Paper 1 go?

Loved the paper - Feeling positive (94)
20.17%
The paper was reasonable (178)
38.2%
Not feeling great about that exam... (119)
25.54%
It was TERRIBLE (75)
16.09%

Watched Threads

View All