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The Plight Of The Asset-Less 40-Somethings Who Cannot Get On The Housing Ladder

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So, which direction is Anna white trying to spin this? I am sure some lender is looking at this big business opportunity.

The plight of the asset-less 40-somethings who cannot get on the housing ladder

The total value of housing stock rented to 35 to 49-year-olds across the UK has increased in value from £66bn to £363bn in the past 14 years.

The more than fourfold increase reflects the boost in property prices but also the increased demand among an age group who once would have expected to own their own home.

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The 445pc jump is three times the average increase in rented housing stock across the whole of England and Wales.

Why rent?

According to Lucian Cook, the head of residential research at Savills, more people aged between 35 and 64 years old, either through choice or necessity, are now renting.

“We’re seeing the lack of accessibility to homeownership that was confined to the under-35s move up into the next age group,” said Mr Cook.

“With a finite amount of social housing stock concentrated in older households, a lack of access to owner occupation is not just affecting the under-35s but beginning to feed up into the 35 to 49 age group. With an ageing population, this creates significant long-term issues in terms of average lifetime housing costs.”

Renting is becoming more socially acceptable, he argued, with some opting for a more flexible lifestyle. Divorce is another factor.

Another social shift is that people are staying single for longer, and following frenetic house price growth before and after the last recession, it is harder to get a mortgage on one salary for those in their 30s and 40s.

• Tracker rates fall below 1pc for the first time

The collective value of all rental homes lived in by 50 to 64-year-olds has increased by 358pc since 2001, compared with 314pc for under-35s.

The generation gap

The report found that those in the youngest age bracket spend the most on housing. The under-35s pay £8,869 per year on mortgages and rents, of which 57pc is made up of private rent, compared with the over 65s who pay just £2,011.

"There is a growing proportion of a young person's housing bill that is taken up by private rents - giving them a shorter period to accumulate housing wealth over their lifetime and the security that goes with it," said Mr Cook.

The structure of the housing market is going to fundamentally shift with housing wealth recycled down through the generations, he added. Also meaning a higher level of cash transactions which inflate house prices for those who do no have a helping hand.

Fact: Over 65s in England and Wales now hold almost £31.2 trillion of equity in the homes which they occupy - 45pc of the total equity held by homeowners across the country.

Fact: By contrast the under 35s hold under 5pc.

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Help!!! I'm in a most terrible plight renting my seven bedroom manor house for less each month than my friends pay to rent their 3-bed ex-council semi from the bank. Whatever shall I do?

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"Sky high house prices and tight mortgage lending keep 35 to 49 years olds trapped in renting and throwing away billions"

ye gads - Anna White (PhD, MBA, FRS) [bless!] has done a multiplication sum! Hurrah, she can do numbers!

Now Anna, please do some basic asset valuation analysis. Oh sorry I forgot you're a thick privileged fatuous moron. My bad.

Edited by Si1

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"Sky high house prices and tight mortgage lending keep 35 to 49 years olds trapped in renting and throwing away billions"

ye gads - Anna White (PhD, MBA, FRS) [bless!] has done a multiplication sum! Hurrah, she can do numbers!

Now Anna, please do some basic asset valuation analysis. Oh sorry I forgot you're a thick privileged fatuous moron. My bad.

Yes. "Throwing away billions" in the sense that I "throw away" 40% of my earnings in tax, or that if someone steals my car, I'm "throwing away" my car?

I must remember not to "throw away" my wallet next time someone mugs me in the street.

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renting is throwing away billions, but help to buy, tax breaks to BTL isnt.

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an HPC member is at a BTL convention in Basildon, to prove BTL LLs are not dumb, he politely asks Anna White to come up, he asks her 'what is 5 + 5?'

Anna replies 'I know this one.... seven!'

The HPC member is about to ask a different person up because Anna is clearly very stupid but the crowd wail

'give her another chance give her another chance'

The member then asks Anna 'what is 3 + 3?'

She replies 'SIX!'

The member then turns to the crowd who he expects to applaud as the crowd shouts out...

'Give her another chance!, give her another chance!

Edited by Bloo Loo

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Fact: Over 65s in England and Wales now hold almost £31.2 trillion of equity in the homes which they occupy - 45pc of the total equity held by homeowners across the country.

This fact appears to have missed off the bit which says that the bankers now want this £31.2tr and the govt will do all it can to force these homeowners to give this windfall to the banks.

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The "plight" of not being able to get onto the housing "ladder" !? Only in rentier Britain is that a plight. In a more sane economy, it's a blessing at this stage.

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renting is throwing away billions, but help to buy, tax breaks to BTL isnt.

It's the language used by the privileged to imply that the less privileged have a choice, and are making the wrong one. Kirstie Allsopp used to do it all the time. Renting is "flushing money down the toilet".

The implication being that these poor plebs don't know what's good for them unlike we, the superior asset owning class, it's their choice to be poor, we can try to educate them but only they can help themselves.

It's like an involuntary tick for these people, I dont think they even realise they're doing it.

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an HPC member is at a BTL convention in Basildon, to prove BTL LLs are not dumb, he politely asks Anna White to come up, he asks her 'what is 5 + 5?'

Anna replies 'I know this one.... seven!'

The HPC member is about to ask a different person up because Anna is clearly very stupid but the crowd wail

'give her another chance give her another chance'

The member then asks Anna 'what is 3 + 3?'

She replies 'SIX!'

The member then turns to the crowd who he expects to applaud as the crowd shouts out...

'Give her another chance!, give her another chance!

In a similar vein to paraphrase George Carlin "the average person is stupid, and 50% of the people are even more stupid than that."

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I don't want to get on "the ladder" anymore. They can get stuffed.

But, but all your friends and family will look down on you. You will become a shock, horror, a "nobody"!

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This generational change is going to have massive effects on every part of society. It is already starting to filter through with big "can't fail" supermarkets like Tesco's starting to make big losses and lose their market share. A few years ago this would have been unthinkable. Younger people have much less money to spend after tax and so things will have to get cheaper if they want to sell. This is all because of the stupid cost of housing which is sucking all the money in and affecting all the other industries. The housing benefit bill is going to go through the roof. But as long as Osborne and his 1%er friends are ok, that is all that matters. These psychopaths can never have too much money!

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Fact: Over 65s in England and Wales now hold almost £31.2 trillion of equity in the homes which they occupy

This is arithmetically impossible. There are about 35 million residential properties in the UK, so at an average price of £180k per property the total equity value of UK residential property is £6.3tn. Over 65s cannot possibly hold £31.2tn in UK residential property equity, £3.12tn maybe.

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With prices set at margins. It won't take 10-15 years for oldies to start selling big houses to come down in price.

health problems and death with suddenly ramp up as these over 65's reach late 60's early 70's. especially with alcohol abuse being so prevent in this cohort.

with prices set at margins only takes the most unhealthy to find the market clearing rate to set lower prices.

We might be in the tail-end of this age-group swapping large houses between themselves. but the clock keeps ticking.

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It's the language used by the privileged to imply that the less privileged have a choice, and are making the wrong one. Kirstie Allsopp used to do it all the time. Renting is "flushing money down the toilet".

The implication being that these poor plebs don't know what's good for them unlike we, the superior asset owning class, it's their choice to be poor, we can try to educate them but only they can help themselves.

It's like an involuntary tick for these people, I dont think they even realise they're doing it.

spot on, its a choice removed from many these days...Help to buy is there to bring back that choice to some...all the props are.

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This is arithmetically impossible. There are about 35 million residential properties in the UK, so at an average price of £180k per property the total equity value of UK residential property is £6.3tn. Over 65s cannot possibly hold £31.2tn in UK residential property equity, £3.12tn maybe.

You underestimate Gidiot, Help to Buy 4 will be announced in July that kind of figure will be his goal.

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This fact appears to have missed off the bit which says that the bankers now want this £31.2tr and the govt will do all it can to force these homeowners to give this windfall to the banks.

Of course they do.Imagine if that is passed down to children.They might be around 50 at the time and retire.That means the people in the middle who pay all the tax might opt out at 50ish.The government will be left with the pensioners and the 30% who wont work.How will they do it though?

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In 10-15yrs an awful lot of the big 3 to 5 bed houses us oldies currently live in will have absolutely nobody to buy them from us.

Exactly. If there is nobody to buy the houses, how can all the houses be worth what the handful that are shifting, are shifting for. Headline should be Grim fate of greying fantasists planning to fund retirement with fantasy equity draws closer.

aei-alumni-8-638.jpg?cb=1428576865

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This generational change is going to have massive effects on every part of society. It is already starting to filter through with big "can't fail" supermarkets like Tesco's starting to make big losses and lose their market share. A few years ago this would have been unthinkable. Younger people have much less money to spend after tax and so things will have to get cheaper if they want to sell. This is all because of the stupid cost of housing which is sucking all the money in and affecting all the other industries. The housing benefit bill is going to go through the roof. But as long as Osborne and his 1%er friends are ok, that is all that matters. These psychopaths can never have too much money!

+1

Some pretty big and powerful corporate interests are starting to note that high property prices are killing their bottom line. Sooner or later they are going to start making life difficult for Cameron and Osborne.

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I also read this as part of what will subsequently be revealed to be a sustained Osborne/CML push back against the Bank of England's stance on the implementation of MMR, worthy perhaps of a thread "The lending standards must collapse to support the bonkers asset prices thread" or WTTE, ;)

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Of course they do.Imagine if that is passed down to children.They might be around 50 at the time and retire.That means the people in the middle who pay all the tax might opt out at 50ish.The government will be left with the pensioners and the 30% who wont work.How will they do it though?

A variant is happening in some places.

I know of several families where there's only been 2 grandkids.

When a GP died, one lot of parents moved to the bigger house, 1 GK moved to the parent's old house.

No money borrowed. No taxed paid.

People will find a way to work-around when housing/mortgages get too expensive

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"Sky high house prices and tight mortgage lending keep 35 to 49 years olds trapped in renting and throwing away billions"

ye gads - Anna White (PhD, MBA, FRS) [bless!] has done a multiplication sum! Hurrah, she can do numbers!

Now Anna, please do some basic asset valuation analysis. Oh sorry I forgot you're a thick privileged fatuous moron. My bad.

Meanwhile, family trapped in house fire are plagued by sky high temperatures and a lack of fuel to go on the fire. :lol:

It takes a special kind of stupid to do that kind of 'logic' and say it with a straight face...or perhaps just lots of letters after your name...

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