The Hotel Of Mum And Dad: 'soaring London Rents Force Adult Children To Live With Parents

[eric pebble]

The hotel of mum and dad: 'soaring London rents force adult children to live with parents'

Almost a third of London parents still have adult children in their twenties or thirties living with them at home because they cannot afford to move out, a survey claims today.

The soaring cost of flats and houses and sky-high rents have forced an entire generation of young Londoners to book into “the hotel of mum and dad” while they save the deposits demanded by mortgage lenders or search for the better paid jobs that would allow them to meet landlords’ demands.

----------------------------------

Quelle surprise.....[not].

All here: - http://www.standard.co.uk/news/london/the-hotel-of-mum-and-dad-soaring-london-rents-force-adult-children-to-live-with-parents-8799452.html

Edited September 6, 2013 by eric pebble

[billybong]

.

Edited September 6, 2013 by billybong

[OnionTerror]

three grand deposit on a RENTED flat...ruddy nora..

[juvenal]

"We're saving up to afford the deposit on a rented flat.."

That's new territory

[billybong]

It bears repeating over and over and over again

It's no way to run a country!

[StainlessSteelCat]

Not so very long ago, £3K would have been a perfectly decent deposit for buying a flat - even in parts of London. It does seem rather high - surely, there are flats for rent which don't require a deposit that high? I never paid more than a month's rent as deposit - have prices/terms got that bad in the last five or six years?

[Ash4781]

This is news? To raise a deposit most new entrants will either take a bank of mum and dad loan or live at discounted market rents (even rent free) to allow them to save for a deposit.

This is also a problem for the bank of England. Even at low rates there's still a massive demand for saving. Savers can manufacture their own interest by being thrifty (in aggregate though this is a disaster)

Edited September 6, 2013 by Ash4781

[TheCountOfNowhere]

It bears repeating over and over and over again

It's no way to run a country!

+1

I;m surprised they don't put VAT on rent

[goldbug9999]

"We're saving up to afford the deposit on a rented flat.."

Obviously hat we need is rental deposit "mortgages".

[winkie]

The game plan is to escape from home to university, rack up £40k worth of student debt doing part time study and having a good social time....to go backwards to live in the parental home....little choice because there is high competition for a short supply of viable long-term secure jobs, that will pay the rent let alone paying rent, debt and give money left over to save anything......the fortunate are the ones that have a family home big enough in the right place to take them back, a home near to a possible well paying job.....what becomes of the rest with no job, or no home, or no money, only debt?

Edited September 6, 2013 by winkie

[campervanman]

Why do young people still bother living in London? £3k would pay nearly a years rent oop North or down on the Costas.

[eric pebble]

My understanding is this is a NATIONAL stat applied by a regionally focused and parochial rag to make it seem more relevant to its readers.

Grown-up children live at home as rents and house prices rise

http://www.ft.com/intl/cms/s/0/eb71071c-163e-11e3-a57d-00144feabdc0.html#axzz2e2Q90kO1

It really is incredible how it has taken so long for people to just even BEGIN to wake up & start clocking something that should have been knocked on the head 15 years ago....

[Dorkins]

Not so very long ago, £3K would have been a perfectly decent deposit for buying a flat - even in parts of London. It does seem rather high - surely, there are flats for rent which don't require a deposit that high? I never paid more than a month's rent as deposit - have prices/terms got that bad in the last five or six years?

Difficult to rent a 1 bedroom flat in most of London for much less than £1k a month nowadays. 6 week deposits are standard to prevent the use of the deposit as the last month's rent. Could quite easily pay £300-£500 in letting agent fees. £1k + £1.5k + £500 = £3k

That's my guess for how they've done the calculation. It's not all the "deposit", but it is the money you have to come up on with on the same day if you want the keys to a flat.

Edited September 6, 2013 by Dorkins

[dances with sheeple]

So if BTL`ers can`t rent to young people, and HB is being cut, how do they rent out their flats?

[winkie]

So if BTL`ers can`t rent to young people, and HB is being cut, how do they rent out their flats?

By partitioning the rooms with sawn wood and plasterboard and putting in extra bunk beds.

[qejunkie]

So if BTL`ers can`t rent to young people, and HB is being cut, how do they rent out their flats?

Yeah they could rent to youg people with a combined 60k household income if they cut their prices but they don't need to because there is ample demand and no supply. This article is very bullish, probably sponsored by RICS, Savills, Foxtons and co.

[juvenal]

Obviously hat we need is rental deposit "mortgages".

I suppose there's always The Bank of Wonga....

[iamnumerate]

Not so very long ago, £3K would have been a perfectly decent deposit for buying a flat - even in parts of London. It does seem rather high - surely, there are flats for rent which don't require a deposit that high? I never paid more than a month's rent as deposit - have prices/terms got that bad in the last five or six years?

Well surely not in the last 13 years or so. However I agree it is a crazy sum.

[credo]

three grand deposit on a RENTED flat...ruddy nora..

You think that's bad, when I was unemployed, I had to pay £1800 deposit (first months rent + last three months up front) + £300 agency fee and a £650 deposit just to rent out a room in a shared house because no landlord in my area would touch DSS tenants with a bargepole.

Life is tough in the UK but life is very tough if for whatever reason you are out of work.

[winkie]

You think that's bad, when I was unemployed, I had to pay £1800 deposit (first months rent + last three months up front) + £300 agency fee and a £650 deposit just to rent out a room in a shared house because no landlord in my area would touch DSS tenants with a bargepole.

Life is tough in the UK but life is very tough if for whatever reason you are out of work.

....everywhere you go you can see the poor, needy, sick and uneducated being exploited by those who should know better.....goes around comes around.

[Maynardgravy]

It bears repeating over and over and over again

It's no way to run a country!

It's exactly the way 'they' want to run the country.

We had the most powerful nation in the world 150 years ago when we could exploit the cheap labour of the world, and at home the majority would live ten to a room working all the hours for bugger all for a life expecancy of 30.

It's their 'return to norm'. When Merv said 'We're all in it together', perhaps he meant 'you're all in one house together'.

[credo]

....everywhere you go you can see the poor, needy, sick and uneducated being exploited by those who should know better.....goes around comes around.

Yes it's quite sad.

That was outside of London but looking at London prices, it's quite scary that people are sharing rooms at a similar rate and this is on top of housing benefit being cut (housing benefit on a room in a shared house is about £65 a week around here and now applies to under 35s).

That's not to say people should be happy living on housing benefit, the aim is to get off it but it paints a quite bleak picture of the situation and the priorities of the government.

It's a shame as housing benefit for 25 to 35 year olds always used to provide a useful safety net which meant people could take on long term rental contracts without averse rental liability but changes to the shared room rate have changed all of that.

[winkie]

Yes it's quite sad.

That was outside of London but looking at London prices, it's quite scary that people are sharing rooms at a similar rate and this is on top of housing benefit being cut (housing benefit on a room in a shared house is about £65 a week around here and now applies to under 35s).

That's not to say people should be happy living on housing benefit, the aim is to get off it but it paints a quite bleak picture of the situation and the priorities of the government.

It's a shame as housing benefit for 25 to 35 year olds always used to provide a useful safety net which meant people could take on long term rental contracts without averse rental liability but changes to the shared room rate have changed all of that.

If as in past times.....there were less of a need for benefits and state help, because an average wage could and would pay for an average sized home without any state assistance, sure there was not much left over from one wage to have exceptionally good food choices, but there were healthy choices... fine clothes or holidays every year but you could pay for the basics with that single wage.......when the kids grew up a bit the wife could go out to work to pay for the little extras.....pin money they called it.....now two wages a bucketful of benefits,childcare costs and latchkey kids is what they call progress......now a state safety net is required before a safety net is really required.

[blobloblob]

Clearly mortgages are too expensive. The BoE should look into cutting interest rates to make borrowing more affordable.

Oh wait...

[StainlessSteelCat]

Well surely not in the last 13 years or so. However I agree it is a crazy sum.

I think the average house price in Newham in around 2000 was £80K. Flats I presume are less. Also people told me that some of the flats in Bow Quarter in the mid 90s were £40K.