3 Million British 20-34 Year Olds Living With Parents.

[Dorkins]

I don't understand why any young person in the South East that isn't earning mega bucks want's to live there.

Because it's where all their family, friends, and professional contacts are? Plus the parts of the UK with cheap rents are not exactly crying out for low/semi-skilled workers.

[Norbert]

The problem is really single people being utterly screwed by the current system. Aside from the well-above-average earners, it takes two salaries to buy a house these days. This is because there are so many dual income households competing for the same, artificially restricted housing stock.

If a couple has kids, then they get tax credits, hence boosting their income and enabling them to compete for the same homes as single, reasonable earners might buy.

I can't see much sense in a statistics about 20-34 year olds living at home, though. I would have thought it was really quite usual for a 20 year old to still live at home (in fact I'd hazard the majority do). If there is a sizable number of 34-40 year olds at home still, then this really does show that there is a big problem.

Edited August 5, 2013 by Norbert

[Self Employed Youth]

Is everyone reading this thread 29 and living with parents?

....I'm 29 and have just moved back in with the parents btw....

I've just turned 26 and live on my own. Moved out when I was 19. Many of my peers live with their parents though, I also know people into their forties who live with parents. A few live in shared housing. A few live in social housing, and a few private rented. A small minority have mortgages, but they can only afford them because of tax credits. The people doing the best wrt housing and income are the single parents. And a few of the people I went to school with have already died.

[lovelyhead]

Because it's where all their family, friends, and professional contacts are? Plus the parts of the UK with cheap rents are not exactly crying out for low/semi-skilled workers.

But there is no real future for a lot of people by remaining.

[Venger]

Excellent post.

The problem is low wages and poor/no job security.

Yet, the supply siders incredibly want to see even lower wages and less job security.

Insanity.

It's just the reverse position of older selfish owners, who absolutely do not want to spill a drop of the HPI and value in their homes. Who want low rates maintained, and the heavily over-indebted not forced to sell, and supply restricted.

What better for older home-owners to champion wage-inflation. Younger people in their 20s earning double, so able to save more quickly and compete to pay more for homes, keeping and even pushing up the value of homes for older owners even more.

And very conveniently for older home-owners, destroying the position of non-owning prudent savers who spent last 12 years refusing to be lured into overpaying into the liar-loan bubble. The £5K-£10K they've managed to save year on year for 12 years, suddenly outstripped in buying power, buy the mega wage inflation older owners would like to see. it's just a position to try and destroy savers of the past 10+ years, and lock in HPI, imo.

[Ash4781]

For most this is the norm to raise a deposit. Living rent free or paying a discounted market rent for an extender period of time. The parents pay!

Edited August 5, 2013 by Ash4781

[iamnumerate]

The people doing the best wrt housing and income are the single parents.

Is this a coincidence - all the single parents you know are highly talented people who earn loads or because of our stupid benefit system?

I guess the benefit system.

[Dorkins]

But there is no real future for a lot of people by remaining.

That doesn't mean there's much of one elsewhere either... What they are doing now might be the best choice available.

There are millions of low-skilled people all over the UK and not enough wages and housing for them all to have the 'single family in a 2-up-2-down, roast on Sunday' kind of life that my 1920s-born working class grandparents who left school at 14 were able to afford. There are going to need to be major political and economic changes before that becomes possible. It's not as simple as hopping on a bus to another town.

[tomwatkins]

My brother is 29 and lives with my/our parents

I am 63 next year but will be 29 the year after.

[chronyx]

Is everyone reading this thread 29 and living with parents?

....I'm 29 and have just moved back in with the parents btw....

My brother is 29 and lives with my/our parents

South East?

[winkie]

That doesn't mean there's much of one elsewhere either... What they are doing now might be the best choice available.

There are millions of low-skilled people all over the UK and not enough wages and housing for them all to have the 'single family in a 2-up-2-down, roast on Sunday' kind of life that my 1920s-born working class grandparents who left school at 14 were able to afford. There are going to need to be major political and economic changes before that becomes possible. It's not as simple as hopping on a bus to another town.

Governments should be aware....ignore the young and your voters at your peril...young people have parents and grandparents....and most of them don't care what their house is worth....they care more about the health, welfare and opportunities of their offspring.

[wherebee]

I left home at 23; my parents gave me a year after leaving Uni to leave home, but charged me rent in that time to get me used to budgeting.

When I look back at what I face then - fairly tight job market, but at least some options, rents affordable, flat I bought in tooting at 27 for 65k that is now 200k - I think what a sh&te world someone in my exact same shoes in 2013 would have. Any pollies reading this should be ashamed.

[Frank Hovis]

I left home at 23; my parents gave me a year after leaving Uni to leave home, but charged me rent in that time to get me used to budgeting.

When I look back at what I face then - fairly tight job market, but at least some options, rents affordable, flat I bought in tooting at 27 for 65k that is now 200k - I think what a sh&te world someone in my exact same shoes in 2013 would have. Any pollies reading this should be ashamed.

Spot on. You graduate at 21 with a £50k debt, tight job market, extortionate rent, and no realistic chance of buying anywhere for another 10 years. This is an absolutely disgraceful state of affairs; I thought it was tough when I started work but the situation nowadays is dire.

[PopGun]

Excellent post.

The problem is low wages and poor/no job security.

Yet, the supply siders incredibly want to see even lower wages and less job security.

Insanity.

+1

A low wage economy can only work if the average house price was < c£50,000!

In real terms we still enjoy the worst of both worlds.

[winkie]

Spot on. You graduate at 21 with a £50k debt, tight job market, extortionate rent, and no realistic chance of buying anywhere for another 10 years. This is an absolutely disgraceful state of affairs; I thought it was tough when I started work but the situation nowadays is dire.

I bought my first leasehold in London in my own name at the age of 24 after leaving school at 16 to go out to into the work place, in those days you could pick and choose your jobs....you could walk out of one job and straight into another one.

[Venger]

+1

A low wage economy can only work if the average house price was < c£50,000!

In real terms we still enjoy the worst of both worlds.

Sounds good to me. Bring it on.

[dances with sheeple]

The problem is really single people being utterly screwed by the current system. Aside from the well-above-average earners, it takes two salaries to buy a house these days. This is because there are so many dual income households competing for the same, artificially restricted housing stock.

If a couple has kids, then they get tax credits, hence boosting their income and enabling them to compete for the same homes as single, reasonable earners might buy.

I can't see much sense in a statistics about 20-34 year olds living at home, though. I would have thought it was really quite usual for a 20 year old to still live at home (in fact I'd hazard the majority do). If there is a sizable number of 34-40 year olds at home still, then this really does show that there is a big problem.

For those hoping to rent out their BTL hovel, or sell their primary residence for a big bounty, yes, they have a large looming problem

[Sancho Panza]

Is everyone reading this thread 29 and living with parents?

....I'm 29 and have just moved back in with the parents btw....

I think where you can,then you should.It makes a lot of financial sense.There's a loss of independence possibly but rather that than a one bed dump that takes half of net salary.

[Frank Hovis]

I think where you can,then you should.It makes a lot of financial sense.There's a loss of independence possibly but rather that than a one bed dump that takes half of net salary.

Plus not paying council tax.

[winkie]

The people doing the best wrt housing and income are the single parents.

It is not easy being a single parent and a working single parent is even harder....kids grow up and benefits will stop...a single parent forfeits the best years of their life to have to then enter the work place at the age of about forty at the bottom of the pile, no work experience, no qualifications, no independence and possibly no spare bedroom.....it is not all wine and roses.

[Sour Mash]

I think where you can,then you should.It makes a lot of financial sense.There's a loss of independence possibly but rather that than a one bed dump that takes half of net salary.

Or alternatively, a house share that takes maybe 25-30% of your salary which is what I and most of my peers did until my earnings reached a level where I could rent (or buy) my own place.

I have sympathy for people so skint (unemployed or NMW) that they literally can't afford to move out but I see an awful lot of 'kidults' living with their parents who have flash cars, all the gadgets and multiple holidays per year on the basis that they don't want to face the inevitable cut in the standard of living (vs what they had for free at home) that comes from standing on your own two feet in early adulthood. Makes me wonder how they are ever going to cope with making their own way in life.

[dances with sheeple]

Or alternatively, a house share that takes maybe 25-30% of your salary which is what I and most of my peers did until my earnings reached a level where I could rent (or buy) my own place.

I have sympathy for people so skint (unemployed or NMW) that they literally can't afford to move out but I see an awful lot of 'kidults' living with their parents who have flash cars, all the gadgets and multiple holidays per year on the basis that they don't want to face the inevitable cut in the standard of living (vs what they had for free at home) that comes from standing on your own two feet in early adulthood. Makes me wonder how they are ever going to cope with making their own way in life.

They won`t need to (from the point of view of running a house that they rent/own) many of them will just care for parents at home then inherit a house when the parents die. The problem with running a Ponzi is greed, greed is the Ponzi Killer, the greed has now ensured that people won`t and can`t take part.

[Dorkins]

Or alternatively, a house share that takes maybe 25-30% of your salary which is what I and most of my peers did until my earnings reached a level where I could rent (or buy) my own place.

Do the maths.

If £400pm to rent a room in a shared house is 25% of your gross salary then you earn £1600pm which is £19.2k pa gross. If it's 25% of your net salary then you are on about £24k pa gross. The average full time salary in this country is about £25k pa, and minimum wage (which for many people is the most they are ever going to earn) is about £13k pa. You may find this hard to believe given what you and your peers experienced, but wage increases are no longer the norm in the UK labour market.

So if you get a job earning £20k-£25k, and (by your affordability criteria) you can just about afford a room in a shared house, then you keep working and paying your rent and wait until... what exactly?

I know people in their mid-30s who are in exactly this situation. They missed their narrow chance to buy in the early 2000s and then a couple of years in shared houses turned into a decade and a half.

Edited August 5, 2013 by Dorkins

[Errol]

awful lot of 'kidults' living with their parents who have flash cars, all the gadgets and multiple holidays per year on the basis that they don't want to face the inevitable cut in the standard of living (vs what they had for free at home) that comes from standing on your own two feet in early adulthood. Makes me wonder how they are ever going to cope with making their own way in life.

Why do they ever need to leave home? They can make their own way in life just as easily living at home. It's just like having a hotel room really.

[iamnumerate]

I left home at 23; my parents gave me a year after leaving Uni to leave home, but charged me rent in that time to get me used to budgeting.

When I look back at what I face then - fairly tight job market, but at least some options, rents affordable, flat I bought in tooting at 27 for 65k that is now 200k - I think what a sh&te world someone in my exact same shoes in 2013 would have. Any pollies reading this should be ashamed.

I agree but surely Labour is mainly responsible?