OnionTerror Posted December 8, 2011 Share Posted December 8, 2011 http://www.dailymail.co.uk/news/article-2071421/Saving-deposit-home-31-years--1993-took-eight.html Millions of families will have to save for more than 30 years to raise the deposit required to get on to the property ladder, a study reveals today. The report highlights the crippling impact of high property prices and the demand for large deposits on cash-strapped families. In 1993, a typical family had to save for eight years to raise a deposit for a mortgage to buy a house. Now they have to save for 31 years. As a result, many have little or no chance of ever being able to get on to the property ladder, says the Resolution Foundation think-tank. Its report, published today, highlights how families forced to rent instead are paying such extortionate prices that they have less chance of saving for a deposit. It shows how they are being ripped off by ruthless lettings agents, an industry which is totally unregulated and has only voluntary codes of conduct. Rents have rocketed to an all-time high in Britain, which means tenants have less chance of being able to afford to save for a deposit. The up-front costs of renting a one-bedroom flat – including a deposit, letting agency administration fees and a month’s rent in advance – can total nearly £2,200. The report considered low to middle-income families bringing in between £12,000 and £42,000 a year. It established an average of £18,600 and assumed a family with this income saves 5 per cent of it every month to purchase a first-time buyers’ home costing £125,000. Putting away £930 a year, it would take them 31 years to save the deposit of £28,750 – or 23 per cent of the price of the house – required to get a mortgage. By this stage, property prices could have climbed even further out of their reach. ‘We need more transparency so tenants at least know what fees they are facing.’ A leading member of the Bank of England has said that many young people will have to wait until they are 44 to buy. David Miles said he understood ‘most people’ put ‘great value on having a home that they can reliably call home for many years’, but said many will have to bury their dream. He said: ‘Few people are nomads by choice.’ Mr Miles said: ‘It will take time for first-time buyers to accumulate larger deposits, so they will typically buy later and the share of homeownership will be lower.’ Mr Miles, who sits on the Bank’s interest rate setting committee, is the third leading financial expert to warn of Britain’s falling rates of homeownership. Paul Smee, director general of the Council of Mortgage Lenders, said recently that many people will spend far longer renting than they had ever imagined. He said home ownership is an ‘unrealistic assumption’ for many people. The Housing Minister, Grant Shapps, has pledged to ‘pull out all the stops to help those who want to take their first step onto the property ladder.’ One initiative is to help people who can only afford a five per cent deposit to buy new-build properties. Yesterday a spokesman for the Department for Communities and Local Government said ‘excessive regulation’ of the private rented sector would push up rents and cut the range of available properties. Quote Link to comment Share on other sites More sharing options...
Djini Posted December 8, 2011 Share Posted December 8, 2011 http://www.dailymail.co.uk/news/article-2071421/Saving-deposit-home-31-years--1993-took-eight.htmlI had to save for 1 year, with my girlfriend (now wife) back in 1996. That was a 10% down on a £73k mortgage. Very hard, but in the long run worth it. Of course shortly after that, the house price was growing faster than anyone could save! Stupid House Price Bubble! Quote Link to comment Share on other sites More sharing options...
Timak Posted December 8, 2011 Share Posted December 8, 2011 By this stage, property prices could have climbed even further out of their reach. If nobody can afford to buy to buy a house how would "the market" have moved further away from them? Quote Link to comment Share on other sites More sharing options...
stuckmojo Posted December 8, 2011 Share Posted December 8, 2011 I love the boomer comments along the lines of "we saved all our money, ate cardboard shavings, no light, no tv, no phone, wiped our arses with leaves, no car and worked 90 hours a week". Quote Link to comment Share on other sites More sharing options...
winkie Posted December 8, 2011 Share Posted December 8, 2011 I love the boomer comments along the lines of "we saved all our money, ate cardboard shavings, no light, no tv, no phone, wiped our arses with leaves, no car and worked 90 hours a week". They are partly right......they saved money, yes....the burnt cardboard shavings on the fire that was the only form of heating for the house....they had light unless there was a power strike....black and white TV 2 channels if lucky...shared phone lines for the few....wiped arses with tracing paper IZAL... few had cars....worked long hours but 90 hours is a bit of an exaggeration. Quote Link to comment Share on other sites More sharing options...
Patfig Posted December 8, 2011 Share Posted December 8, 2011 They are partly right......they saved money, yes....the burnt cardboard shavings on the fire that was the only form of heating for the house....they had light unless there was a power strike....black and white TV 2 channels if lucky...shared phone lines for the few....wiped arses with tracing paper IZAL... few had cars....worked long hours but 90 hours is a bit of an exaggeration. Ahhh good old IZAL, fond memories of the slippery school bog roll Quote Link to comment Share on other sites More sharing options...
GordonBrownSpentMyFuture Posted December 8, 2011 Share Posted December 8, 2011 Putting away £930 a year, it would take them 31 years to save the deposit of £28,750 – or 23 per cent of the price of the house – required to get a mortgage. By this stage, property prices could have climbed even further out of their reach. Now, the price of everything else on the other hand... Quote Link to comment Share on other sites More sharing options...
winkie Posted December 8, 2011 Share Posted December 8, 2011 Ahhh good old IZAL, fond memories of the slippery school bog roll Funny that you should mention that. Quote Link to comment Share on other sites More sharing options...
rantnrave Posted December 8, 2011 Share Posted December 8, 2011 They are partly right......they saved money, yes....the burnt cardboard shavings on the fire that was the only form of heating for the house....they had light unless there was a power strike....black and white TV 2 channels if lucky...shared phone lines for the few....wiped arses with tracing paper IZAL... few had cars....worked long hours but 90 hours is a bit of an exaggeration. While the wife stayed at home to raise the kids, content in the knowledge that securing a mortgage on a 3-bed semi before the husband was 30 did not depend in any way on her earnings. Quote Link to comment Share on other sites More sharing options...
Spare Change Please Posted December 8, 2011 Share Posted December 8, 2011 I'm starting to think my generation should just stick it to them and on mass either return home from the rented accommodation or refuse to pay the sky high rents. Sick of their smugness. Quote Link to comment Share on other sites More sharing options...
Patfig Posted December 8, 2011 Share Posted December 8, 2011 Funny that you should mention that. one sheet per sheet Quote Link to comment Share on other sites More sharing options...
BlinkTooFast Posted December 8, 2011 Share Posted December 8, 2011 The Housing Minister, Grant Shapps, has pledged to ‘pull out all the stops to help those who want to take their first step onto the property ladder.’ He will Ban BTL Ban dual home ownership Ban mortages over 3x Jack the BoE rate to 15% Implement LVT Stop Mortgage Relief Eliminate HB Give all future QE directly to all non-homeowners, splitting it evenly between them Ban non-UK residents purchasing property Ban mortgage forbearance Scrap Planning Regulations Sell each of the properties he owns to FTBs at the cost of the construction Confiscate land banks and split them between non-homeowners to encourage building Quote Link to comment Share on other sites More sharing options...
200p Posted December 8, 2011 Share Posted December 8, 2011 Boomers sketch, you've seen this, but I'll post it again: It was really hard in them days... Quote Link to comment Share on other sites More sharing options...
Democorruptcy Posted December 8, 2011 Share Posted December 8, 2011 He will Ban BTL Ban dual home ownership Ban mortages over 3x Jack the BoE rate to 15% Implement LVT Stop Mortgage Relief Eliminate HB Give all future QE directly to all non-homeowners, splitting it evenly between them Ban non-UK residents purchasing property Ban mortgage forbearance Scrap Planning Regulations Sell each of the properties he owns to FTBs at the cost of the construction Confiscate land banks and split them between non-homeowners to encourage building Ban mortgage securitisation Limit mortgage terms to 25 years Ban mortgages that take people above the age of 65 Imprison bankers or mortgage brokers who do not stick to the rules Seize as the proceeds of crime the properties of people who bought them by lying about their income Ban right to buy Ban shared equity Make house builders submit tenders, to keep prices down Quote Link to comment Share on other sites More sharing options...
rantnrave Posted December 8, 2011 Share Posted December 8, 2011 Ban mortgage securitisation Limit mortgage terms to 25 years Ban mortgages that take people above the age of 65 Imprison bankers or mortgage brokers who do not stick to the rules Seize as the proceeds of crime the properties of people who bought them by lying about their income Ban right to buy Ban shared equity Make house builders submit tenders, to keep prices down Close down the Daily Express Send NIMBY groups to Jeremy Clarkson Quote Link to comment Share on other sites More sharing options...
Tiger Woods? Posted December 8, 2011 Share Posted December 8, 2011 (edited) . Edited December 8, 2011 by Tiger Woods? Quote Link to comment Share on other sites More sharing options...
Unsafe As Houses Posted December 8, 2011 Share Posted December 8, 2011 "It established an average of £18,600 and assumed a family with this income saves 5 per cent of it every month to purchase a first-time buyers’ home costing £125,000. Putting away £930 a year, it would take them 31 years to save the deposit of £28,750 – or 23 per cent of the price of the house – required to get a mortgage." The actual assumptions and data modelling behind this 31 year headline grabbing statement are a bit suspect. The study sounds a load of sh1te frankly. Quote Link to comment Share on other sites More sharing options...
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