Jump to content
House Price Crash Forum
Sign in to follow this  
Converted Lurker

Over Half Of First Time Buyers Who Have Graduated Still Not On The First Rung Ten Years Later

Recommended Posts

First time buyers who have recently graduated are being squeezed out of the property market, with more than half unable to afford their own home, research has shown...

The problem of getting on to the property ladder does not just affect recent graduates, with a quarter of people who graduated 10 years ago still not owning their own homes.

Around 56% of people who graduated from university during the past 10 years have yet to get on to the property ladder, 3% more than last year, according to Scottish Widows Bank.

http://firstrung.co.uk/articles.asp?pageid...articlekey=6772

Share this post


Link to post
Share on other sites
The problem of getting on to the property ladder does not just affect recent graduates, with a quarter of people who graduated 10 years ago still not owning their own homes.

Guilty. In fact, it must be almost exactly 10 years since my graduation ceremony.

Share this post


Link to post
Share on other sites
Guilty. In fact, it must be almost exactly 10 years since my graduation ceremony.

Ditto, except 9 years. My salary has been playing 'catch up' to HPI ever since I started work 9 years ago. Of course, had I known this HPI was gonna happen for nigh on 9 years, I'd have borrowed more than I could have afforded back in 1999 and bought a flat.

Of course, thats all assuming that the banks, back then, would have lended me more than 3x my salary.

Share this post


Link to post
Share on other sites
Ditto, except 9 years. My salary has been playing 'catch up' to HPI ever since I started work 9 years ago. Of course, had I known this HPI was gonna happen for nigh on 9 years, I'd have borrowed more than I could have afforded back in 1999 and bought a flat.

Of course, thats all assuming that the banks, back then, would have lended me more than 3x my salary.

Lenders were a lot stricter then.

Share this post


Link to post
Share on other sites

I have given up on buying a house (becoming a slave), but I've landed a decent salary and my skills are in demand so I will keep saving and vacate this ship of fools when I feel ready.

Share this post


Link to post
Share on other sites
Thats what I remember.

Funnily enough, when I first started toying with the idea of buying (about 2001, aged 25) my initial thoughts all centred around the notion that 3.5x my income was a prudent approach. This was waaay before I understood so man of the things that I do now. In retrospect, it transpires that I did have a brief window around that time when my salary and local prices were aligned so that the above multiple was possible - and I do mean brief.

Do I regret not doing it? Hell no, I was way to immature to desire or manage such responsibility at that time. I now earn more than twice what I was in 2001/2, but y'all know what has happened to prices since.

Share this post


Link to post
Share on other sites
Am I being dim here? The two paragraphs say different amounts (one says a quarter of those who graduated 10 years ago, the other says 56%) ?

??

Buckers

I think it means up to 56% inside the first ten years havn't managed to buy, so theoretically that could be last years graduates. Those who graduated ten years ago (as a cut off point) only 25% have bought :blink:

Share this post


Link to post
Share on other sites
Same for me almost exactly 10 years. I am just trying to think if 3 quarters of my uni friends now own. I think probably easy that up North but more like 50% down south.

its ten years since i graduated and all my friends bar 2 have now bought - and interestingly they are the ones that work in the city on 6 figure incomes who havent got round to it and i firmly believe it is their lifestyle choice. one just pisses his £4.5k salary / month on drink and partyingevery weekend, the other is more careful and has plenty saved but regrets not buying earlier when he could have afforded more than he can for his money now. i think he is in a good position when the market weakens but he may have to wait a few years and with a nagging wife that's difficult.

For many renting is a lifestyle choice. Most of my other friends have managed to buy in the last few years, even though their incomes are not much above average. maybe lending criteria are slacker today, but they are i guess banking on good career progression and large hikes in their income over the next few years to lighten the load a bit. we'll see!

Share this post


Link to post
Share on other sites
Funnily enough, when I first started toying with the idea of buying (about 2001, aged 25) my initial thoughts all centred around the notion that 3.5x my income was a prudent approach. This was waaay before I understood so man of the things that I do now. In retrospect, it transpires that I did have a brief window around that time when my salary and local prices were aligned so that the above multiple was possible - and I do mean brief.

Do I regret not doing it? Hell no, I was way to immature to desire or manage such responsibility at that time. I now earn more than twice what I was in 2001/2, but y'all know what has happened to prices since.

Yes it was around 2002 so I stretched to 4* in 2003 5 years after I graduated but this was still only for a one bed. I think other graduates had higher standards.

I am sure I am in a minority but after a bad experience renting I was left with no choice but to buy.

Share this post


Link to post
Share on other sites

Graduated over 4 years ago now - If I had really thought about it, I would have bought almost immediately I got a job. However, the reality was that I did not need to do so - I had a place to live, no rent or anything to pay - I would have been buying it solely to make money (which is not what I consider to be the 'ladder') and probably would have been helping to stop someone who actually needed a house from getting one. Fast forward and now I am married and we really could do with our own place but prices have quadrupled so no chance and no chance anytime soon of affording with the potential of only one salary. In the same job etc. 4 years ago and we would have been in a small detatched property.

Share this post


Link to post
Share on other sites
Graduated over 4 years ago now - If I had really thought about it, I would have bought almost immediately I got a job. However, the reality was that I did not need to do so - I had a place to live, no rent or anything to pay - I would have been buying it solely to make money (which is not what I consider to be the 'ladder') and probably would have been helping to stop someone who actually needed a house from getting one. Fast forward and now I am married and we really could do with our own place but prices have quadrupled so no chance and no chance anytime soon of affording with the potential of only one salary. In the same job etc. 4 years ago and we would have been in a small detatched property.

Almost exactly the same with me - although not married (yet!). It's the curse of being born in 1981.

Share this post


Link to post
Share on other sites

11 years, Kept putting it off because I wanted to travel and see the world.

All but one of my five closest friends have bought so thats 1+me =2/5+me = 33% not buying.

One of them got given a house so had no mortgage but then he thought it would be a good idea to get 4 BTL's.

Share this post


Link to post
Share on other sites

Yes same here, up to 9 years now, almost to the day.

The picture is very consistent actually amongst my cohort.

If the bank of Mummy & Daddy is on-tap and offspring have no shame = they've all long since bought.

Everyone else = not a hope in hell, a roughly 50/50 split between those saving like mad once they were in a position to earn enough money for it to be possible to save meaningful sums (I'm in this group) and those who have basically become nihilists as regards the whole issue. I think that latter group aren't mentioned here often enough actually, discouraged bears do not necessarily become bulls and much of the assumed "pent up demand" has long since given up on the whole idea.

Edited by Cogs

Share this post


Link to post
Share on other sites
Yes same here, up to 9 years now, almost to the day.

The picture is very consistent actually amongst my cohort.

If the bank of Mummy & Daddy is on-tap and offspring have no shame = they've all long since bought.

Everyone else = not a hope in hell, a roughly 50/50 split between those saving like mad once they were in a position to earn enough money for it to be possible to save meaningful sums (I'm in this group) and those who have basically become nihilists as regards the whole issue. I think that latter group aren't mentioned here often enough actually, discouraged bears do not necessarily become bulls and much of the assumed "pent up demand" has long since given up on the whole idea.

this is just depressing reading guys, not that it's new to me. The social impact (nihilism) of this reversion has yet to be felt. :(

Share this post


Link to post
Share on other sites

I had a dream of owning my own house from when I was about 18. I just saw it as a place where I could "be left alone". So I always had it highly focussed in my mind....

1990: bought a caravan to live in - bedsits in my town were £70k and I was earning about £12k

1992: got an equity share on a council estate - 50% of £50k

1997: loss of job/relocated elsewhere and sold equity share in negative equity - paid £2.5k to get out

2000: by a complete stroke of luck I had one year of good (contract only) earnings, during which time I squirrelled away every penny I had, managed to get a mortgage and bunged the lot down. Unfortunately on a money pit ... old house/lots of expensive work to do. Change of circumstances meant I sat in that house pretty much most of this time, lights out, eating beans.... waiting for something to change

2000-2007: HPI meant my house increased by 295%

2007: sold

Moral of this story is - over your lifetime you've no idea how your fortunes will go up/down. And even though something looks hopeless, still look for your chance to strike while the iron is hot.

As it turned out, the house I bought was the wrong house in the wrong area for me to really ever work again. But.... 7 years on and I flogged it, thanks to HPI I've now got enough cash to buy a small house mortgage free.

Just waiting for the prices to drop now.

So, if you WANT a house - and have seen it snatched from you, start really saving hard NOW... and while your savings are going up and prices are coming down sit back and think whether you really want one!

Also - don't miss the next boat. Don't start getting greedy and waiting until 4-bed detached houses are £40k...... be realistic in how much you can save, what you will be able to mortgage to/buy and secure yourself something that is affordable.

Nothing impresses the neighbours more than a repossession .....

Good luck to everybody who can see their chance appearing in the next 4-6 years.

Edited by ScaredEitherWay

Share this post


Link to post
Share on other sites
First time buyers who have recently graduated are being squeezed out of the property market, with more than half unable to afford their own home, research has shown...

The problem of getting on to the property ladder does not just affect recent graduates, with a quarter of people who graduated 10 years ago still not owning their own homes.

Around 56% of people who graduated from university during the past 10 years have yet to get on to the property ladder, 3% more than last year, according to Scottish Widows Bank.

http://firstrung.co.uk/articles.asp?pageid...articlekey=6772

1. how can they be first time buyers if they have not bought a house?

2. since when did graduates rush out to buy a house when they finish uni? the average age for ftbs has always been mid to late twenties.

Share this post


Link to post
Share on other sites
Also - don't miss the next boat. Don't start getting greedy and waiting until 4-bed detached houses are £40k...... be realistic in how much you can save, what you will be able to mortgage to/buy and secure yourself something that is affordable.

I would say if anyone is hoping to pick up a bargain in the Great UK Housing Sale, just wait until Halifax and CML issue reports saying that the housing market will continue to fall for another ten years (should happen after 2-3 years of falling prices). That will be the clearest signal that the bear market has ended.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 355 The Prime Minister stated that there were three Brexit options available to the UK:

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.