Giving people a goal in life

[biotechpete]

Precisely. One's first rung on the property ladder will likely not be an "average" house but a below average house. Once equity is built up and hopefully earnings increase though life, the first house can be sold to finance a deposit for a better house. That's why it's called a ladder.

I'm on my 3rd house. My first was in Wybourne and my second in Hillsborough.

 

And at the time one buys their first property neither will one's wage be average. It's clear that ownership is decreasing and it's churlish to suggest that the main factor in that is not the cost of housing.

[Olive]

I'd find it a struggle to buy my first house on my own now, even though I earn a lot more than it did when I bought it.

 

In 1999, I was single, early on in my career, earning something like an average wage, and I could comfortably afford to buy a terrace in Walkley with hardly any deposit. That same house would be upwards of £150k if it was for sale now, I would think. A lot for a first time buyer to find, especially on their own.

[biotechpete]

I'd find it a struggle to buy my first house on my own now, even though I earn a lot more than it did when I bought it.

 

In 1999, I was single, early on in my career, earning something like an average wage, and I could comfortably afford to buy a terrace in Walkley with hardly any deposit. That same house would be upwards of £150k if it was for sale now, I would think. A lot for a first time buyer to find, especially on their own.

 

Exactly, my old neighbour in Walkley area bought in 2000 for £46,950, sold in 2010 for £105,000 and just sold again £145,000. That's basically a 300% increase in price in that time.

[unbeliever]

And at the time one buys their first property neither will one's wage be average. It's clear that ownership is decreasing and it's churlish to suggest that the main factor in that is not the cost of housing.

 

I don't disagree that UK house price inflation is stupid and has been for a long time. The use of averages though was not valid.

Land on which one is permitted to build houses is expensive and houses are expensive to build. The latter is a result of environmental and safety regulation and is unlikely to change. The former is a result of planning rules and is probably the easier to address.

[Robin-H]

And at the time one buys their first property neither will one's wage be average. It's clear that ownership is decreasing and it's churlish to suggest that the main factor in that is not the cost of housing.

 

I might be wrong but I'm not sure that anyone is suggesting that the cost of housing isn't a reason why home ownership rates are falling, only that a poster said that affordable housing didn't exist, and that it was impossible to buy a house without inheritance or a lottery win.

 

People are just saying why that isn't true.

[Bob Arctor]

Interesting. It always seemed to me that the various factors that might have contributed to the rampant rise in house prices in that decade, even when added together, didn't quite account for the massive price inflation.

 

It's as if the very fact that they were rising was leading to more rising (if you get what I'm saying!). So people saw what was going on, thought "I'd better buy myself a house before they get even more expensive", the banks got giddy and lent 100% plus mortgages, and so on. Like a housing gold rush.

 

House prices have risen in part because people have been willing to pay inflated prices, backed by lenders who are happy to lend greater sums. A friend in London recently sold a property and when he had it valued the estate agent quoted him a really high figure. When my friend exclaimed "How much?!" the estate agent told him "You need to stop seeing it in terms of what you think it's worth and start thinking of it in terms of what someone else is willing to pay". This is a toxic attitude that only really benefits estate agents, lenders and investors. My friend told him to do one and sold it for a lower price through another agent, but sadly I think most wouldn't have.

[Hogg]

House prices are too high and out of reach for many, but Sheffield is one big city where young people can afford to buy if they are in work. I wonder if there is a prejudice (not unfounded) against buying in certain areas, with people preferring to rent in the nicer parts of the city. All well and good, but it won't get them on the property ladder.

[El Cid]

You sure you want to destroy your pension?

 

The main part of it is from opting out of the state second pension. So a Government pension, that I can claim at the age of 55

Its only a small part of my overall state pension, and I have been paying into a company pension for the past 8 years.

The mortgage will be paid off in 15 years.

[unbeliever]

The main part of it is from opting out of the state second pension. So a Government pension, that I can claim at the age of 55

Its only a small part of my overall state pension, and I have been paying into a company pension for the past 8 years.

The mortgage will be paid off in 15 years.

 

Well if you've done your sums and you're sure.

You could easily be right as if you buy the house you've no rent to pay in retirement (after the mortgage is paid off).

[El Cid]

I might be wrong but I'm not sure that anyone is suggesting that the cost of housing isn't a reason why home ownership rates are falling, only that a poster said that affordable housing didn't exist, and that it was impossible to buy a house without inheritance or a lottery win.

 

 

Do people still have that same desire to save for a house; they are more likely to get a new sofa on the tick.