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Dave Beans

Generation Tenant - How Britain Has Become A Nation Of Renters In Just 10 Years

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Well done Daily Mail- putting big blue spots where the main towns and cities are.:rolleyes: Now I can't see what colour Norwich is supposed to be. I'm guessing dark red. :unsure:

Same goes for Cambridge & Luton too.

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I thought the likes of Cornwall would be much higher....

Highest second home ownership in Devon and Cornwall. Either vacant waiting for the owners to grace it and the few locals with their presence for a couple of weeks, or it's let occasionally as a hoilday let, but not as a business of course. Locals probably living with parents.

Edited by LiveinHope

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Very high in my neck of the woods, Liverpool. Not surprising with the amount of homes the government took off the market in the North West through the Pathfinder scheme.

The situation will only deteriorate as those in their 50s/60s who own their own homes will be living in them for the next 20-30 years and less houses will be on the market.

And in the short term we will see further cuts throughout government departments. NHS and schools next on the list IMO. Many people in the cities rely on government jobs, not just the North so less employment opportunities in the next 5-10 years.

With no stable job, low wages and no savings due to a sporadic work history I can't see many young people being able to afford a mortgage and deposit.

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Very high in my neck of the woods, Liverpool. Not surprising with the amount of homes the government took off the market in the North West through the Pathfinder scheme.

The situation will only deteriorate as those in their 50s/60s who own their own homes will be living in them for the next 20-30 years and less houses will be on the market.

And in the short term we will see further cuts throughout government departments. NHS and schools next on the list IMO. Many people in the cities rely on government jobs, not just the North so less employment opportunities in the next 5-10 years.

With no stable job, low wages and no savings due to a sporadic work history I can't see many young people being able to afford a mortgage and deposit.

Therefore they almost certainly won't be paying high rents if asked for.....who need to buy a house when rents are soooo much more affordable........local rents are linked to local jobs and income, house purchases are linked to credit availability, savings, type of income and credit history. ;)

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local rents are linked to local jobs and income,

I agree to an extend.

We still have Housing Benefit so the landlord earns his keep whether the tenant is employed or unemployed. It has been reduced slightly through the 'bedroom tax' although I think the unemployed are just making up the difference through channeling other benefits such as Jobseeker's Allowance to cover the shortfall. This creates a drain on other areas of the economy such as leisure and retail.

Will be interesting to see how this ends.

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I agree to an extend.

We still have Housing Benefit so the landlord earns his keep whether the tenant is employed or unemployed. It has been reduced slightly through the 'bedroom tax' although I think the unemployed are just making up the difference through channeling other benefits such as Jobseeker's Allowance to cover the shortfall. This creates a drain on other areas of the economy such as leisure and retail.

Will be interesting to see how this ends.

The best indicator of this will be Kebab shops and Pound Land.

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This as much a failing and decline on GENUINE socia/council renting than in increase on private renting, IMHO.

Agree; plus rising numbers of students, foreign workers, elderly in sheltered / rented acconmodation and single parents (combined with generous housing benefits) on the demand side with increasing BTL mortgages / investors and relatively low increases in the stock of housing on the supply side.

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People are renting because they are expecting a crash.

Big discussion blew up in my office last week about property. Everyone says there's a bubble and there has to be a crash.

Looks like it only a matter of time.

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People are renting because they are expecting a crash.

Big discussion blew up in my office last week about property. Everyone says there's a bubble and there has to be a crash.

Looks like it only a matter of time.

Yep, sentiment is the name of the game.

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Yep, sentiment is the name of the game.

No. Crashes occur when there is no one left to support the ponzi. Sentiment comes afterwards and would be that which suppresses prices.

Edited by honkydonkey

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The government believe people are renting because they can't save up enough for a deposit; a problem that has been (or will be) solved with billions of 1) interest free loans 2) underwritten losses, using taxpayer monies ... an d this will win the Tories the election.

If/When I buy my first house I will buy it with the least mortgage and the lowest amount of government jiggery-pokery possible. I don't believe that I am alone in this sentiment.

My war chest will remain shut while there is still 'help' to buy.

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Why (OK we know it is a bubble) would they want it to crash? If they own they would lose money, if they bought recently they would be in -ve equity. I guess these people who talk about the bubble can't afford to buy or are stuck second steppers and the next rung is too far away. In the past general sentiment was that HPI was good and everyone talked about how much their property had gone up in the last month.

The government believe people are renting because they can't save up enough for a deposit; a problem that has been (or will be) solved with billions of 1) interest free loans 2) underwritten losses, using taxpayer monies ... an d this will win the Tories the election.

I think people are finally defining their risk, if the market goes against them, like a good trader does before placing a trade, especially if they are going to be highly leveraged.

In itself this is a step change in perception from the 'property only goes up' mantra. People are nervous and deserve to be.

All these years of hard earned deposit money or BoMad wiped puff! Because house prices moved against them a few percent.

It comes to something when they have to almost give money away, and there are hardly any takers.

Edited by aSecureTenant

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It's becoming socially acceptable, ie you are not a loser, and it will become the norm long before the boomers get to offload their houses for the enormous sums they have already spent. Not a money tree after all. Haha.

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People are renting because they are expecting a crash.

Big discussion blew up in my office last week about property. Everyone says there's a bubble and there has to be a crash.

Looks like it only a matter of time.

True. But people I know are trying to buy to escape high rents even if they have to set their sights a lot lower, especially those with decent deposits.

Rents have risen 20% in less than 5 years while many people have had pay freezes or pay cuts.

So the attitude is 'you have to live somewhere and rent hikes are currently more worrying than interest rate rises.

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Maybe the requirement for higher deposits is making people more cautious?

Stubbing up 30% cash is hard. It makes people aware of hard it is to save 40K.

Previously, that 40K would be provided by the bank via a higher LTV.

People are probably more wary and scared about losing 'their 40K of cash' than about losing the 'bank's 40k of debt'.

Same sort of mental dissonance you get with people claiming to 'own their own house' despite having a large mortgage.

Separately, the flip side of 'Britiain becoming a nation of renters' is 'Britiain becomes a nation of owners who cannot sell'

You under consume housing when you rent - smaller place closer to work; HMO share is you are under 30.

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True. But people I know are trying to buy to escape high rents even if they have to set their sights a lot lower, especially those with decent deposits.

Rents have risen 20% in less than 5 years while many people have had pay freezes or pay cuts.

So the attitude is 'you have to live somewhere and rent hikes are currently more worrying than interest rate rises.

Maybe in London (but Im not sure).

Rents in the towns I monitor are not showing that.

The NE/Yorkshire place has shown pretty static rents for the last 12 years.

The SW place saw rising rents from the early 2000s to 2007ish. Now they are back to where they were in 2000, in nominal prices.

I have a rough+ready sum to normalise the rents - divide the rent by bedrooms.

The SW area has seen a massive increase of rentals.

There are some massive voids - previously rentals used to go within 2 weeks. Now they can hang around empty for 4 months.

The NE/Yorks place has seen a massive increase in holiday lets (NY coast).

There has been some residential rentals - but there's probably enough social housing to pick up most low-end demand.

The NE holiday lets voids are even worse than the the SW rental voids.

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If/When I buy my first house I will buy it with the least mortgage and the lowest amount of government jiggery-pokery possible. I don't believe that I am alone in this sentiment.

My war chest will remain shut while there is still 'help' to buy.

Yes, t'is why the real intention is 'help' to get into more debt. ;)

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A few months ago my first job (first line techinical support in a software company and first rental house (2 bed new build) were advertised.

In 2001 I was paid £18k a year in this job and my rent was £695 a month.

The job was advertised at £20k and the house at £895 a month, so the incresed pay was more than wiped out by the increase in rent.

However the biggest change was that the house I bought in 2003 for £135k is now "worth" £230k

On the same job I had back then there is no way I'd have been able to buy an equivalent house.

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Newcastle isn't part of Britain is seems.

It's in the Desolate North-East: it might as well not exist.

As for Scotland...

Even more so.

Edited by Scunnered

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A few months ago my first job (first line techinical support in a software company and first rental house (2 bed new build) were advertised.

In 2001 I was paid £18k a year in this job and my rent was £695 a month.

The job was advertised at £20k and the house at £895 a month, so the incresed pay was more than wiped out by the increase in rent.

However the biggest change was that the house I bought in 2003 for £135k is now "worth" £230k

On the same job I had back then there is no way I'd have been able to buy an equivalent house.

QED.

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On the same job I had back then there is no way I'd have been able to buy an equivalent house.

Should 'responsibly' be added to the end of that sentence?

The problem we have is that someone can 'buy' that same house on that income provided they are on ultra low interest rates and they forego luxuries like eating. The problem is people are stupid. If they think they can afford the repayment, or indeed interest only payment in month 2 and probably in month 3 of their 25 year term they think they can afford it.

"Interest rates? What are those? They are low? thats good isn't it? Makes it more affordable, thankyou government for helping me. Oh and a scheme as well, they are nice aren't they. They get my vote."

The one that gets the house today is the most stupid one, the one prepared to borrow the most at historically low rates without having the faintest clue what they are doing.

Until idiots are saved from themselves this will go on. On until the cost of borrowing rises, then they must be protected presumably. Can't have people being responsible for their own actions can we. Oh no. Meanwhile if you've half a brain you don't buy and spend your rented life being trodden on by idiots like our buyer there who by now has convinced themselves they're a business mastermind and look down their noses at YOU! The financially aware person. Oh how silly you have been, not over borrowing and ignorantly getting into enormous debt for something you cannot afford.

:(

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