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Who Is Going To Be Able To Afford To Buy Or Rent Come 2020?

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I've read lots of reports that say both rental prices and house prices are going to keep increasing exponentially and that by 2020 most young people will not be able to afford to rent or buy. If that is the case, who is going to be paying these rents/house prices? I know a lot of foreigners come to the UK to study and buy homes but surely there are not enough of those.

Are we going to have a crazy situation where millions of houses and rented properties lie empty because nobody can afford them yet young people will be living with their parents in cramped homes?

Nobody is going to both working if after tax the majority of their income goes to pay the rent/mortgage.

What a disaster.

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I've read lots of reports that say both rental prices and house prices are going to keep increasing exponentially and that by 2020 most young people will not be able to afford to rent or buy. If that is the case, who is going to be paying these rents/house prices? I know a lot of foreigners come to the UK to study and buy homes but surely there are not enough of those.

Are we going to have a crazy situation where millions of houses and rented properties lie empty because nobody can afford them yet young people will be living with their parents in cramped homes?

The Queen will be forced to step in and act as rentier of last resort.

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I've read lots of reports that say both rental prices and house prices are going to keep increasing exponentially and that by 2020 most young people will not be able to afford to rent or buy. If that is the case, who is going to be paying these rents/house prices? I know a lot of foreigners come to the UK to study and buy homes but surely there are not enough of those.

Are we going to have a crazy situation where millions of houses and rented properties lie empty because nobody can afford them yet young people will be living with their parents in cramped homes?

Nobody is going to both working if after tax the majority of their income goes to pay the rent/mortgage.

What a disaster.

I can only see that squatting would to come back in a really big way if this scenario plays out.

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I can only see that squatting would to come back in a really big way if this scenario plays out.

I used to despise squatters. Now nothing would give me more pleasure than seeing unsold new build 'executive' apartments stuffed to the ******ing rafters* with them!

*You could probably just about squeeze half a dozen into the rabbit hutch shit boxes these days!

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I used to despise squatters. Now nothing would give me more pleasure than seeing unsold new build 'executive' apartments stuffed to the ******ing rafters* with them!

*You could probably just about squeeze half a dozen into the rabbit hutch shit boxes these days!

Ha, well (decent) squatters would turn their nose up at those :)

Edited by Tonkers

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As far as the young with university debts goes, probably only those with parents who can stump up some equity. Mobility will depend more than ever on the wealth of your parents.

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More house-sharing into later and later life.

More multi-generational households.

Smaller and smaller living spaces.

Humans are very adaptable to circumstances, IMO.

Which is unfortunate as we could do with another peasant's revolt before we get to that stage. ;)

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The Queen will be forced to step in and act as rentier of last resort.

:D it's all her land anyway. Left hand/right hand etc etc.

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I used to despise squatters. Now nothing would give me more pleasure than seeing unsold new build 'executive' apartments stuffed to the ******ing rafters* with them!

*You could probably just about squeeze half a dozen into the rabbit hutch shit boxes these days!

If the current government policy continues, too many people will be able to 'afford' to buy and that is the problem.

If I want to buy a £400k flat using Help To Buy, I only need to find a 5% deposit and then I can borrow the rest on a mortgage at 2% so will only have to pay back £650 per month. If these policies drive the price up to £500k by 2020, who cares as that is a £25k deposit and £800 per month. That is quite easy for a couple earning £30k each, and certainly cheaper than finding the £1,700 per month required to rent the same place.

Outside of London, the salaries would be lower but so would the prices.

It would look very different if the government were to withdraw all support and raise interest rates, but the longer they keep this up the less likely they are to ever do that as the potential crash becomes bigger and bigger.

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Do you really think landlords will let houses sit empty? They can only charge what people can afford and not a penny more. The reason rents seem too high is because of the massive distortion caused by housing benefit.

Remove housing benefit and watch what happens to rents.

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Do you really think landlords will let houses sit empty? They can only charge what people can afford and not a penny more. The reason rents seem too high is because of the massive distortion caused by housing benefit.

Remove housing benefit and watch what happens to rents.

Foreign buyers might prefer to keep them empty.

Banks may sit on repos rather than allow price discovery, as in Spain.

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Elites keep benefits high enough to keep the yields at an adequate level, said benefits being paid for by frothing at the mouth Daily Mail reading mugs who are too stupid to work out who the enemy is or are benefitting from it so don't care. Britain returns to a feudal society. The end.

Well thats the plan, anyway.

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More house-sharing into later and later life.

More multi-generational households.

Smaller and smaller living spaces.

Humans are very adaptable to circumstances, IMO.

Which is unfortunate as we could do with another peasant's revolt before we get to that stage. ;)

Yes, the sad fact is government can either abuse directly, or indirectly by sanctioning the abuse by banks and others its populace to a great extent. Until they find their bellies empty and their Sky sports package unaffordable, they dont much care. Oh sure, they might vote for the other party and pretend that makes a difference.

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I've read lots of reports that say both rental prices and house prices are going to keep increasing exponentially and that by 2020 most young people will not be able to afford to rent or buy. If that is the case, who is going to be paying these rents/house prices? I know a lot of foreigners come to the UK to study and buy homes but surely there are not enough of those.

Are we going to have a crazy situation where millions of houses and rented properties lie empty because nobody can afford them yet young people will be living with their parents in cramped homes?

Nobody is going to both working if after tax the majority of their income goes to pay the rent/mortgage.

What a disaster.

Your taxes will be paying to subsidise rents and mortgages. H2B is just the start, wait till 75% of the house is paid for by the taxpayer.

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If the current government policy continues, too many people will be able to 'afford' to buy and that is the problem.

If I want to buy a £400k flat using Help To Buy, I only need to find a 5% deposit and then I can borrow the rest on a mortgage at 2% so will only have to pay back £650 per month. If these policies drive the price up to £500k by 2020, who cares as that is a £25k deposit and £800 per month. That is quite easy for a couple earning £30k each, and certainly cheaper than finding the £1,700 per month required to rent the same place.

Outside of London, the salaries would be lower but so would the prices.

It would look very different if the government were to withdraw all support and raise interest rates, but the longer they keep this up the less likely they are to ever do that as the potential crash becomes bigger and bigger.

Sooner or later there will be something resembling an economic upturn, and interest rates will have to rise. When that happens, there will be carnage. And if interest rates do not rise in the UK, while in Europe and America they do, there will be even greater carnage.

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I would think that by 2020 things might look quite a lot different.

For example - if people can no longer afford rents a lot of surplus BTL's might well be bought up at knock down prices by the likes of Tesco, who would then drive rents down to gain market share. It would be mandatory for tenants to purchase Tesco energy and broadband. Tesco would also benefit by opening a Tesco Express on all developments where they owned a substantial part of the housing stock.

You heard it here first.

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I would think that by 2020 things might look quite a lot different.

For example - if people can no longer afford rents a lot of surplus BTL's might well be bought up at knock down prices by the likes of Tesco, who would then drive rents down to gain market share. It would be mandatory for tenants to purchase Tesco energy and broadband. Tesco would also benefit by opening a Tesco Express on all developments where they owned a substantial part of the housing stock.

You heard it here first.

More corporate entrants should be welcomed, in my view, and it's happening with pension funds etc. So long as they finance the building of it rather than hoover up existing supply. They are much more likely to run a portfolio on a professional basis and avoid some of the common complaints that tenants often voice about their landlords. It's not a given of course, but I think there would be a good chance that a large corporate landlord would be a fair bit better than the average private landlord, however that would be defined.

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Sooner or later there will be something resembling an economic upturn, and interest rates will have to rise. When that happens, there will be carnage. And if interest rates do not rise in the UK, while in Europe and America they do, there will be even greater carnage.

Why? The US and Europe have had real recessions and real asset price reductions whilst the UK has had a fake recession and a fake recovery. When the US and Europe return to real growth the UK will still be having fake growth (rising GDP due to HPI and falling living standards due to high inflation and low wages).

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Maintaining house prices will become even more necessary the deeper they and the house buying public get into it. Today we saw rail fares going up 4% in the UK because 'taxpayers shouldn't subsidise the railways' whilst house prices are rising by 4% because taxpayers are subsidising the housing market.

Expect more taxpayer subsidies for house prices whilst more reasons are given why taxpayers cannot subsidise necessary public services. House prices will only be sacrificed when there is nothing else left to plunder.

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I see a future of people living with their partner in one of their parents homes. Maybe the average moving out age will get to mid 30's?

With "rockstar" Carney at the helm we can expect another 5 years of low interest rates which is only gonna make things worse.

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Your taxes will be paying to subsidise rents and mortgages. H2B is just the start, wait till 75% of the house is paid for by the taxpayer.

Its all social housing now. They have socialised the deposit, and the mortgage via a state backed back. Social housing but not as we knew it Jim.

Mind you they have managed to socialise housing and still make it bloody expensive :blink:

Edited by aSecureTenant

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I see a future of people living with their partner in one of their parents homes. Maybe the average moving out age will get to mid 30's?

With "rockstar" Carney at the helm we can expect another 5 years of low interest rates which is only gonna make things worse.

Nah. People will be living in new build boxes costing 20x incomes with 75% of the house owned by the taxpayer but everyone will have to pay privately for policing and health cover.

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