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Observer: Young People 'giving Up On The Property Dream'

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Observer: Young people 'giving up on the property dream'

2.4 million people scale back plans for home ownership as prices remain too high for most

Young people are increasingly falling out of love with the idea of owning their own home, new research shows, as prices remain too high for most to afford.

A study of 2,000 people by the Chartered Institute for Housing, to be released tomorrow, shows that only a third of 18-to-24-year-olds now think owning a home is right for them.

Over the past 12 months an estimated 2.4 million people, most of them young, have changed their opinion about home ownership, when asked their ideal living situation before the credit crunch compared with their ideal living situation now.

The biggest change in attitudes has come in the 25-to-34 age range, with a fall from 83% to 69% of respondents wanting to own their home.

http://www.guardian.co.uk/business/2009/ju...-housing-market

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I agree with this based on my own circle of friends. Nobody is talking about getting their own home, even though they're in what would be considered as good jobs.

The nation collectively coming out of their obsession with property will have a much bigger impact on HPI/HPC then financing restrictions which may ease over time.

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I agree with this based on my own circle of friends. Nobody is talking about getting their own home, even though they're in what would be considered as good jobs.

The nation collectively coming out of their obsession with property will have a much bigger impact on HPI/HPC then financing restrictions which may ease over time.

It's actually stronger than that. I'm 35 and a lot of people I know have never bought and just carry on renting, especially those in London.

Of course as an STRer I am now getting the experience, though with the benefit of several hundred k of unearned income. For some of my friends I don't know how they manage as they never seem to save anything.

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I wonder if this is because they see so many of their peers trapped in Neg equity and with a millstone mortgage unable to move to another area to work if their job disappears. Word of mouth will soon get round that it is not clever to be overburdened by a mortgage in perilous times. The recovery is not here yet.

Are we getting close to the debt revulsion stage?

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Why should owning a property be a dream? If it was sensibly priced and lending practices were sensible too, then it would be a lot better.

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A study of 2,000 people by the Chartered Institute for Housing, to be released tomorrow, shows that only a third of 18-to-24-year-olds now think owning a home is right for them.

It what world is it expected that 18-24 year olds should own a house FFS.

I was 27 before had a stable enough income to buy a house and that was in a time when prices where about three time average eranings.

tim

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I think about 24 is a good age to buy a first house. I would think say a deposit of £10,000 on a house costing about £75,000.... what do you think?

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It what world is it expected that 18-24 year olds should own a house FFS.

I was 27 before had a stable enough income to buy a house and that was in a time when prices where about three time average eranings.

tim

This has been one of the disturbing facets of this boom, single 18-24 year olds desperately jumping into property.

At the time when you are most free to have fun, need to be entirely flexible with where you live, seemed like madness to me.

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I must have a good memory.

This time is the same as last time. This is a sign of the gradual decline in interest in property, and we have a few years of it to come.

In about 2014, a few people caling themselves Smart Money will have the idea of buying a house, and everybody else will look at them quizically and say "Buy? A house?" That's how I remember 1994.

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Yes this is an important trend. On similar lines, clearly we haven't had a proper HPC yet as people are still treating it as a blip or a good time to grab a bargain. The HPI mentality is quite obviously prevalent. Only when people look at you in horror when you suggest buying will we have reached the contrarian buy signal. (Very much like people looking at you in horror and pity when you previously suggested house prices will go down).

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There is of course a big difference in "owning" a home, and renting one from the bank. The first one is a good goal IMO ( a crazy bubble doesn`t help of course) the second one is a mugs game unless you have a strict overpayment plan.

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I think about 24 is a good age to buy a first house. I would think say a deposit of £10,000 on a house costing about £75,000.... what do you think?

I think 24 year olds should be out getting laid and not thinking about mortgages

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Webb believes Britain not only needs to build many more flats and houses, but to come up with more viable and affordable forms of tenure such as shared equity. She also wants the government to consider using the tax system to prevent house prices from booming again.

So who do we vote for to get these things (except shared equity)? Labour, Lib Dems, Tories, BNP?

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I think 24 year olds should be out getting laid and not thinking about mortgages

I am sure that there are a few people that are 'settled' enough at that age to make it worth buying a place, but for most it just does not make sense.

Lifestyles have changed since the 1960s. In those days, most people were married with kids by their mid-20s, now it is more usual to delay this type of thing until late 20s/early 30s.

This is not necessarily positive, and in part due to high house prices, but I don't see the point in rushing to buy a place before being settled.

Unfortunately, a lot of people this age will still be being fed stories about 'missing the boat' etc and will do whatever they can to buy a place even though it is not the sensible thing to do.

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I think 24 year olds should be out getting laid and not thinking about mortgages

well, yeah, i mean it depends, i think that most posters on here seem to have been through some kind of higher education but i know quite a few young men who left school at 16, got into a trade such as joinery, and at 24 have got five years of good earnings [probably helped by the housing boom] behind them and, having been out of education for so long, feel more than ready to settle down, with the money to do so.

generally speaking though this is excellent news. it's getting on for two years since the peak of the bubble, it won't be too long before the first thing most people [other than hamish, sibbers, valerius, rinoa, and the gang] think of when they hear the word 'house' will be more along the lines of 'place to live' than 'winning lottery ticket'.

Edited by the flying pig

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My take was always that revulsion would come only after a bounce had been crushed. It takes a second dissapointment to finally crush the spirit.

I think people would need to know someone in their immediate network who have been crushed to some degree, particularly being stuck in over priced housing, as this will demonstrate the risks involved, which clearly went out the window in the last decade.

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Hmmm....interesting. Sounds like possible capitulation in that particular demographic.

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I think people would need to know someone in their immediate network who have been crushed to some degree, particularly being stuck in over priced housing, as this will demonstrate the risks involved, which clearly went out the window in the last decade.

Quite right, thats another factor piling on the pressure.

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Hmmm....interesting. Sounds like possible capitulation in that particular demographic.

Indeed. And we all know this demporaphic is rather important for future price movements.

Law of unintended consequences - The desperate attempts to hold up prices will simply piss off the only group left who could save the market.

Hence a crash that could have been over in a few years - will drag on for 5-10.

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That will come when young people start throwing up on the property dream.

I am sure there's a pent up supply of that :)

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Demographics play a much larger part than many here give credit. The number of boomers is nowhere near as large as the group which is their children (Boomer Echoes). This demographic wave was about 30yrs old when the boom kicked off. Now they've all got houses they're running out of new-comers to keep the HPI ball rolling.

The demographic wave of Boomer-echoes was the theme of my first post here and it coincides beautifully with the forthcoming crash. There simply isn't a large enough group coming through to keep the money flowing in from the bottom.

HPC 100% Guarranteed. No more troops left.

Money supply, mortgage rates, LTVs just helping it all along, but they're like bad weather. It's the lack of any reinforcements for the mortgage-mincer which will lead to a victory for the Sanity-Allies.

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Indeed. And we all know this demporaphic is rather important for future price movements.

Law of unintended consequences - The desperate attempts to hold up prices will simply piss off the only group left who could save the market.

Hence a crash that could have been over in a few years - will drag on for 5-10.

Well, I was actually thinking about it from the opposite perspective as it happens. But I'm in the 30-40% camp rather than the long decline camp. When the bulk of nominal falls are done, which I expect by around Q1 '10, then I think it's a question of looking at local and specific markets. I have offspring in that demographic so it may be a good time for them to look to buy when no-one else is interested.

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