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Tempus

The collapse of home ownership among the young

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Also how young those days are not wired the same way and have no interest in ownership.

Also the entitlement of young people to have a house handed over to them.

Looks great for the tories too bad we have 4 more years to wait.

Edited by Freki

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1 hour ago, Tempus said:

And this is only since 1996...

Home ownership is no longer something the majority of young or ordinary people can aspire to. 

No wonder the Tories are dying in terms of membership. Buy to let has essentially destroyed the social fabric of Britain.

https://www.newstatesman.com/politics/uk/2018/01/boomers-vs-millennials-defining-schism-uk-politics

DTF_unjXUAEsvDq.jpg

 

Whilst the change in proportion of home ownership is big, the other thing that should be blasted over the papers is the housing wealth has reduced significantly. 

Under 34s own just 3.3% of the housing wealth- even if they are an OO, their equity doesn't amount to much of the whole market as they only have a small equity in the low end of the market. 

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They've wriggled themselves firmly into a bind.

In handing money to homeowners and making housing unaffordable, they have destroyed the influx of home buyers. Young people now have a lot less interest in owning a home; we've tried renting and it seems to suit us.

Old people, on the other hand see the "value" in housing and have paid (or committed to) extraordinary sums for it, which is now allegedly "their retirement"

You can't eat a house, so presumably, they wish to liquidate their property at some point, but to whom? The old, who have (in theory) the capital will want to liquidate their own assets, and the young have neither the capital, nor the desire to acquire housing.

 

The obvious result is a fall in price, but then where's that retirement gone? Old people without loving families are utterly stuffed, as far as I can see.

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Interesting stats. The "over 65s" going up is probably partly due to those at that age living longer too.

My boy will be getting a big ISA lump sum for his first house and my wife and I will downsize as well to help.

No point an over 60s having a stupid amount of bedrooms!

 

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16-34 is not the most helpful group to look at - 16 year olds would NEVER be owning houses anywhere in history, and it dampens down the even bigger collapse in the older groups.

Look at 22-34 year olds and the decline would be even greater.

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3 minutes ago, OzzMosiz said:

Interesting stats. The "over 65s" going up is probably partly due to those at that age living longer too.

My boy will be getting a big ISA lump sum for his first house and my wife and I will downsize as well to help.

No point an over 60s having a stupid amount of bedrooms!

 

Plenty who do have too much space and are wise do downsize within reason....but change for those over the age of 85 is harder, there are more older people living for longer so that increases the percentage of home owners as you say.......many can't downsize because their bedrooms are filled with the priced out, intergenerational......older generations started work earlier, repaid in full earlier and retired earlier.....now they study for longer all the while prices increasing, running backwards renting and saving.....buying when older, having to retire later and repaying their debt when older.....that is if they ever buy.;)

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22 minutes ago, OzzMosiz said:

No point an over 60s having a stupid amount of bedrooms!

What is a 'stupid amount'? I would see 2-3 spare bedrooms as a reasonable amount. It allows for guests, or re-purposing of rooms etc.

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4 hours ago, Tempus said:

No wonder the Tories are dying in terms of membership. Buy to let has essentially destroyed the social fabric of Britain.

As a Tory wag recently said... "Capitalism has limited appeal if you are never likely to have any capital".

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42 minutes ago, Errol said:

What is a 'stupid amount'? I would see 2-3 spare bedrooms as a reasonable amount. It allows for guests, or re-purposing of rooms etc.

That's the trouble with houses you can't sell individual bedrooms. May sound facetious but imagine some over-60s couple, three kids left home, so now they live in a house larger than they really need. They don't need or want the extra space but neither do they want the hassle of moving out of a place they like living in and have spent ages getting just how they like it with favourite shrubbery and so on.   

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10 minutes ago, Futuroid said:

As a Tory wag recently said... "Capitalism has limited appeal if you are never likely to have any capital".

Should more honestly have said "Capitalism has limited appeal if you prefer crony capitalism".

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13 minutes ago, Futuroid said:

As a Tory wag recently said... "Capitalism has limited appeal if you are never likely to have any capital".

It also had limited appeal if the ability to accumulate capital is pulled out from under you.

Debtism. Not capitalism.

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19 minutes ago, Funn3r said:

That's the trouble with houses you can't sell individual bedrooms. May sound facetious but imagine some over-60s couple, three kids left home, so now they live in a house larger than they really need. They don't need or want the extra space but neither do they want the hassle of moving out of a place they like living in and have spent ages getting just how they like it with favourite shrubbery and so on.   

Equally it may not be worth them moving depending on where you live. My parents could leave their property and walk away with £200,000 or so.

Problem is that a good 2 bedroom flat is £550,000 and their 4 bedroom semi is worth £750,000... Sadly all house prices are tied to the size of the mortgage you can get based on the monthly rent. The solution as others have constantly repeated here is to ensure interest only mortgages are priced higher...

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The trend seems to be for the collapse in ownership stabilising ...perhaps due to HTB? The question is I think not simply about ownership and non ownership but what the young have to commit to and sacrifice now to become owners. They commit to a bitter and heavy burden.

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9 hours ago, Locke said:

The obvious result is a fall in price, but then where's that retirement gone? Old people without loving families are utterly stuffed, as far as I can see.

What I still don’t get is when generation rent retire.. what happens to them with their crap pensions /no existent pensions..? ONS was quoting an additional £43 billion cost to the tax payer to house them.. ( current £26 billion housing benefit)

Brexit is pennies by comparison to the cost of housing lots more people with no assets..

Housing cost will bankrupt the country, therefore rental costs are completely unsustainable as are housing costs once they are no longer viable assets with dwindling rent values. It’s just a short/mid term smash and grab by the corrupt government.. 

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2 minutes ago, macca13 said:

What I still don’t get is when generation rent retire..

Retirement is so 20th century!

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Thanks Tempus. Very telling graph. I'd like to know how those percentages would look just for the south east. I'd have thought the 34% would be a fair bit lower. The resentment must really be growing among the priced out 30 years plus crowd. Few alternatives but to rent at sky high prices.

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On 1/9/2018 at 11:07 AM, Tempus said:

And this is only since 1996...

Home ownership is no longer something the majority of young or ordinary people can aspire to. 

No wonder the Tories are dying in terms of membership. Buy to let has essentially destroyed the social fabric of Britain.

 

 

The decline started under Labour.  A bit ironic if the young reward them with votes for starting this.

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19 hours ago, Futuroid said:

As a Tory wag recently said... "Capitalism has limited appeal if you are never likely to have any capital".

lol, how very true that is.

For some reason the elites seem to think that the new norm is for people to work for them for little or no reward (capital/assets).  How strange, as this crazy nonsense will lead to complete social breakdown if we still have a capitalist system in place.

So obvious, yet many don't seem to see it.

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1 hour ago, iamnumerate said:

The decline started under Labour.  A bit ironic if the young reward them with votes for starting this.

IF the young vote Labour in at the next election it won't be the same Labour party that Blair led, that much is certain.

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1 hour ago, Social Justice League said:

lol, how very true that is.

For some reason the elites seem to think that the new norm is for people to work for them for little or no reward (capital/assets).  How strange, as this crazy nonsense will lead to complete social breakdown if we still have a capitalist system in place.

So obvious, yet many don't seem to see it.

They are boiling frogs. So far there's little reaction. A whole generation neutered by Facebook.

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  • 406 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
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      • Even
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      • up 5%



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