Why Is It So Hard For First Time Buyers, Right Now?
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- Опубліковано 19 чер 2024
- Why is it so hard for a first time buyer right now? Property prices have surged, the cost of living crisis has taken hold and mortgage interest rates are at an all time high. We have a fundamental problem with house builders and tacky new build estates, but more the government not helping to tackle our supply issue. Instead focusing on incentivizing demand like the help to buy schemes only push property prices up further.
I explore why it's hard for first time buyers right now trying to buy a property.
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Timestamps
00:00 Intro
00:50 Mortgage Repayments Getting More Expensive
01:26 The Problems - Why It's Getting Harder
05:25 Help To Buy - Did it REALLY help?
06:50 The Good Signs Ahead - What Will Help First Time Buyers?
08:07 The Chronic Problem - Nothing Will Help First Time Buyers
09:57 Affordability is Key
10:58 Conclusion
WHO AM I:
I'm Matt, a senior product manager and property investor working Remotely for a VC-backed tech startup. I make videos about money, investing, tech and productively building a business.
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I've saved £30,000 for a house deposit in the last few years using some outrageously strict budgeting and I still feel a world away from being able to purchase my first home. Prices are ridiculous just as much as the mortgages. As a 24 year old Welsh lad who earns a good salary in financial services, I can honestly say that the leadership in this country is letting generations of people down in so many ways, and this is one of the big issues - It's genuinely terrifying. I fear for my future and the future of everyone my age in this country.
It’s rough out there and the problem won’t be solved until they make it easier to actually build homes! We badly need planning reform.
I own my own home and a small rental so it’s in my interest for thing a to stay as they are (my property prices will go up) but I know it’s not right, it’s horrible in fact, and I was a first time buyer in 2016 and experienced the horror show that was buying a property for the first time so it’s fresh in my memory.
We badly need planning reform. More supply will solve most of the issues we have.
Well Thatcher need start "the need" for home ownership and she was a c8nt
Be proud you’ve saved the money! Great achievement.
It’s not easy whatsoever, we bought 2021 after saving for a number of years. The whole thing was very frustrating, artificially low rates for 10 years fuelled this. Unfortunately we have no idea where it’ll go next so we decided to buy instead of rent again which was ridiculously expensive for the state of the properties we looked at.
It’s not easy, good luck
@@Witnessmoo the new houses they are building are rubbish though. There are loads of regulations on light switch heights and other pointless things, while the quality of the actual building is terrible.
This country will have no one here and these houses will stay empty.
For some people working remotely, moving to another country is starting to look like a reasonable idea. Having come to the uk as an immigrant 10 years ago, I have been doing everything I can to stay here but prices r skyrocketing to the point a commute from spain/portugal to stansted is far cheaper than a train from ipswich to london for when you need to go office. Several of my colleagues who are of british origin are considering the same, which must be very difficult, as leaving your country due to financial reasons can be one of the most uncomfortable decisions
Exactly the same position. And I agree.
Companies will be pulling the whole remote work rug soon. At least the larger companies.
I'm going to move to Portugal and work remotely. I just need to learn the basics of the language first.
@@Samuels691 depends on the work. Remote working is literally in my contract
The UK is managing to turn away the people who the country needs the most.
My issue with apartments is the ridiculous service charge that comes with the property. When you factor these in typically I could just go and get a house for the difference
I struggled with this too in a flat, service charges kept going up and we found as leaseholders more and more admin charges being added on. Vicious circle
Yep, they never go down and some years they go up significantly.
Absolutely. Having my fingers burned with service charge...I stay away from flats, period.
Last 30 years have seen homes being seen as an investment rather than somewhere to live. So many TV programmes were about increasing the value of your home and there's no point in paying to improve your home if you don't eventually sell it to see the profit.
Average wages have fallen so far behind average house prices there is no hope of them ever catching up in the next 50 years because that's how long it's took to get to where we are now. I feel so sorry for 20 year olds now because it's going to be so tough for them for most of their lives.
It's interesting that this phenomenon has been happening in North America and Europe. It almost seems as though there is a concerted effort (by whom, I do not know) to ensure the next generation never owns a home. Skyrocketing inflation in housing coupled with high interest rates and stagnant wage growth would seem to indicate that the have nots will always be have nots. And as inflation increases in mortgages, rents and everything else are going up, too. Dangerous and violent times may be ahead. No wonder so many of the 1% own homes in, and are citizens of, more than one country.
Another great video. Completely agree, supply side policies are needed to fundamentally change. We don’t need more shoe box apartments , we need more liveable, quality alternatives to houses on the outskirts of cities.
So, this is where I am. I am mid 30's, and decided to travel before buying a house. So now, eager to buy my first home, I have managed to save 40k for a deposit, but I am caught in a bit of a predicament. I am single, no wife, no kids, and my company is internet based. Meaning I don't require a physical location and have no ties to a fixed location. I am now looking to buy my first home for cash in Sweden. So it's either 5 acres of land, a detached 5 bedroom house for 40k (no mortgage), on a lake, and with a big city within an hours drive, or a two bedroom mid-terraced that needs work for minimum 110k (I'm in Cardiff right now). Go figure...
I’m from Cardiff too but live in Australia now! Totally understand as Cardiff is such a great place to live, just doesn’t make financial sense
@@GraceMarieBarry I moved here as this was my 'air quotes' place to settle. But now, looking around, I just can't justify spending that much to buy my home. I am not one who want's to buy/sell/buy/sell. I want my home for life, my patch, and I just cannot find it here now. It's a shame as I love the UK, I love Wales, but its just not affordable. Hope you're enjoying AUS! :)
did you want to stay in Europe, or are you happy somewhere hot with a super healthy lifestyle surfing away or anything you like doing and working in a chic cafe with like-minded people that are multicultural? DM for a chat
A huge problem in London is developers marketing and selling an entire new build block to foreigners overseas which just inflates the house prices even more and British people then can’t afford a house in their country
Imagine living under a government that allow that to happen.....and the predominant narrative is that the government is 'right wing'.......
China. They own a large part of Britain, Ireland and Africa now. They dont care about human rights or structural integrity. We're all in trouble
As a builder that "new build premium" is true... but one of the biggest scams about.... there isnt a new build thats been built in atleast a decade that would stand up to a 60 year old house here in the uk... new builds are built cheap, cheap materials, small gardens, they fall apart...
Literally having to sort timber on site as you can punch through half of it... and thats for the internal walls
And with inheritance tax frozen you will not get your hands on your parent’s home YOU WILL OWN NOTHING BUT BE HAPPY so BUILD BACK BETTER and those who fail to see what’s coming have only themselves to blame
I'm 41 and the "cheapest" place near me which I could afford is 25% shared ownership costs £106,250 & the monthly rent would be £664. A problem is the damn mortgage would be around £575. Working it out and that's around 70% of my take home pay not counting bills. I live at with my mum near oxford so many would call me a failure as I haven't got my own place. I could just get a fairly luxury tent for £200 but i would probably get an ASBO from the local authority's. The government is really screwing whole generations with their inability to offer some help.
You're not a failure. The country has failed you.
The boomers voted for this
Your not a failure!!! You just might to move elsewhere to like I did. (North)
Why you didn't bought 10 years ago?was it because waiting for crash or some other reason?also you can move different city, if this is you take home job I would guess it is rather unskilled so you can find a workplace almost anywhere
We've just bought our first house June last year and it was bloody hard work!!! The house was under valued by £20k so we had to drop our 20% deposit to 15% to free up money to make up the difference... And even though we were borrowing a lot less we actually have to pay more per month on the mortgage 🙄 dreading in 5yrs when we have to reassess our mortgage
In the UK if something is not taxable, it is probably illegal.
Great video mate 📹
The help to buy scheme was designed to help house builders to sell not home buyers to buy, even worse It allowed them the opportunity to charge the difference over the prices in the same area (eg, average house price near me is £180k, the cheapest house on the new estate nearby is £280k)
Is the house on the new Estate comparable?? A old 2 bed terrace near me can fetch 110k go, 3 miles to the new build site you get a 3 bed 2 parking space but they are 250k. Higher priced area, better house. Help to buy helper us skip several rungs on the ladder. We ended up with a 4 bed detached in a village at the age of 24. Without help to buy we would have got a s**tty damp 2 bed semi in the worse area. Not for everyone I guess but worked for us. It didn't even inflate prices locally as they were less than before 2007. They have gone up but only passed 2007 in 2021. 🤔
Loving the content man. Appreciate the commentary and the sources etc. Keep it up!
Much appreciated!
Agree on most points aside from the positives surrounding flats. Non-investors looking to purchase flats run risk of high service charges and flat out rejection from lenders as many landlords aren’t prepared to cap ground rent. Having gone through this myself and seen it happen to others, don’t be fooled into thinking purchasing a flat is a smarter financial decision. IMO houses are still the way to go.
I had a suspicion the house I was looking at was overpriced at market rate even with the first home discount, this just confirms it and glad I wasn’t risking negative equity if I went ahead and bought the new build at a premium
Just offer your final most comfortable price and wait.
Daft. People trying to time the market are fools and you may live to regret not buying if prices rise further, then you'll be whining about unaffordable houses but fail to mention you were in a position to buy.
I purchased with my partner last April in 2022. Very happy
We bought our first house in November 2021, borrowing £290k at 2.2% fixed for 5 years. It's crazy how quick rates have jumped.
average home price, 10 x the average wage.
Banks will only lend 4/5 times the average wage.... meaning absolutely huge deposits will be required.
All caused by the artificially low interest rates for the last decade. which caused people to get ever bigger loans for virtually nothing. meaning more houses than normal being bought. combined with an incentive to charge more when selling houses, as people had access to cheap loans. drove the house prices to sky rocket.
The trouble is low interest rates everywhere has made the prices shoot up everywhere. The politicians clearly knew that it would increase asset prices but they were quite happy about it as that would keep their core voters happy. Younger generation is quite indifferent to politics and don't vote hence they can easily be ignored. The trouble is people don't see the downsides of higher property prices once they buy and want it go higher and higher. It is quite bad for the next generation who have wait longer and earner higher, people have to wait until 35-40 to buy one and start a family which is bad for nation due to lower or negative birth rate, less money to spend elsewhere after paying for mortgages ruining economy with that money sitting with the big banks.
On the site im currently on we've been told our prices will drop 6% as the company isnt selling houses quick enough... well they cost roughly 100k to make and they sell them for 500k... reduce the price by half, force the prices to drop, and dont drop the builders pay as all thatll do is result in worse worksmanship...
Im a builder who can average 50k a year and i cant remember the last building site i was on which sold a house i could afford...
Also I know its their job, but I hate that estate agents etc will falsely report that house prices are going back up, the demand isn't there because everyone is broke. There's doing your job and then there's outright lying.
You are so knowledgeable so I wanted to ask you a question. I am going to pay cash for a house we have been looking at but I wanted to know the best way how to obtain a 50K mortgage that I can repay over 25 years so I have money to improve the house cosmetically? Not sure if this is possible but it would help me a lot. Thanks and look forward to reading your advice.
Hi Matt, just stumbled across your channel. Great stuff!
Welcome aboard!
Seems like a pipe dream to buy a house. Everytime I look into it, the dream seems impossible and over complex.
Governments shouldn't allow corporates invest into houses and apartments, because they make basic needs not affordable for people.
Im in a good position. Just going to keep an eye out for opportunities but much prefer to watch for rest of the year and focus on other stuff eg up skilliny. Any offer I make will start low though lol
Remote working might work for some ,however no one is stopping from companies employing people from Philippines working remotely for £4 per hours and for them it’s still an ok money but for everyone who lives in Europe it’s not really possible,so it’s not gonna be an solution long term
It's just never going to happen for me, our family has never owned a home and even if I budgeted to high hell, my rent fully prevents me from saving enough to even make a dent.
Really insightful video, thankyou. Can you do a video on the First Home Scheme please?
I'll look into it
Rishi with his stamp duty holiday is going to be responsible for pandemic buyers on short fixes struggling to pay their hiked monthly mortgage payments. Labour should make this a key attack line at the next election.
HTB inflated house prices by design
I lost my home a while back , normal story..
I have 30k and i dont have a chance. I am not living in an apartment. A 4 bed near me is half a million. I will wait a year or two but abroad seems to be the only option now plus my wages would double. Really dont wanna leave home but i'm getting older and thanks to mass migration and wage surpression it may force me to migrate myself.
I have nearly £100K saved up for a property & I'm strugging to justify the current house prices and mortgage rates. For a Mortgage of £385K i got quoted £1600 a month. Part of me wants to give up for the year and keep putting more away, or go rent and ride it out.
I feel you man, hustled the fuck out of the last 4 years, saved similar amount to you, seller pulled out last minit, before contracts signed, mortgage wasn't transferable to another property and quotes the week after went from 2.5%to 5.5% interest, back to sq 1 😪
£100k saved is amazing. I think you deserve serious props for that. My girlfriend and I have also saved, not quite to your extent yet as we only started doing so a year and a half ago but man I think we're just going to sit tight with our rental at the moment and hope something changes in the medium term.
Why buy a property with that kind of money when you can have a small self run business?
@@Sohailali1 I'm in the process of setting a business up, the 100K was saved over a long period solely for property.
@@stevefaust3532 Sounds good. This recession is going to be a year long (Maybe). A lot of black swan events. I would hold on to those plans.
Prices will go up when interest rates go down, even slowly....if everyone waits until then. Increased demand, increased prices
The biggest issue is that people are single, separated or divorced and lack the funds of our grandparents that were in stable families. It’s always single parents and their children that are the most deprived.
there is a crisis around relationships at the moment. Divorices sky high and therefore lining the pockets of solicitors and online dating and covid destroyed chance for people to get success in dating.
@@mbbx5va2 To which there is a very obvious answer. Stop bed hopping, stay single and chase excellence in yourself, rather than chasing your next ex partner/spouse.
Thank you for the video I feel lot better about not being able to buy a house I’m 25 and I earn well but still can’t buy an I beat myself up,about it
I’m 35 and no closer. If you’re saving a % of your income each month you’re doing the right thing though so keep going
Trust me I was same four years ago
The government increased the money supply (printed money) during the pandemic which increases the value of all assets. In my opinion this had a much larger impact than the two reasons you provide. This is evident by the increase in all real asset values in 2020, e.g. across the entire stock market.
I guess I’ll keep saving up.
Another great video! So concise and clear. Would you recommend buying now with the higher rates and high prices, or waiting for the prices to dip? Assuming you can afford the deposit and repayment plan.
I did a video last week (about remortgaging) that talks about this with a broker. Rates are trending downards which is good, but the BoE rate is expected to increase up to 5%. It's all a total unknown so if I gave you my opinion I'd just be trying to predict the unknowns of the future. If it was me personally - I would lock a fixed rate in now, but not draw it down as they stay valid for 6 months, then in 6 months if better rates are out you can scrap it and get a new mortgage, if they go up - you've already locked in your cheaper 6 month offer from now, so you create a win/win scenario (if you can call it a win on any of the current higher rates)
@@MattBrighton for remortgagers great. For first time buyers there's the issue of the mortgage offer timing out by the time a property is found and deal has gone through, depending on when offer is put in etc
Waiting for prices to dip? You talk like it's a certainty and you have a crystal ball. If it's a home just buy the damn house.
@@MattBrighton Great advice. Really love your videos. Thank you for your response.
On the claim that property prices are likely to fall 'by a few percentage points': The bottom has fallen out of the market with the interest rate rises, reducing affordability by 25-30%, and due to the six-month lead time between sale agreed and sale complete and the delay in subsequent reporting of figures, we won't even see the effect on sold prices until February-March-April this year. The BoE will probably have to raise interest rates further as inflation is still riding high. The 1990 crash (20% fall) was precipitated by an interest rate hike and the peak multiple of average property price to average gross annual income only reached 4.5 prior to that. The peak multiple in April or so last year was around 9.0. Based on the maths, I can see a crash worse than the 1990 one. 'A few percentage points' seems naively optimistic.
The one thing all seem to forget is that 30 40 50 years ago people spent a fraction of their income on gadgets , internet , comfort , going out , sports , hobbies etc . I agree that its not as affordable but most people in the UK live beyond their means , in order to buy a property you need to consider all these factors...
Help to buy fuelled demand
Tell me about it I’m trying to get a mortgage but I’m not worth anything even if I got a 25% down payment for the property 😮😢😡😂🤬
If i want to buy a victorian house how will building more houses help?... anything that works out mathematically will be gobbled up by property investors... Builders don't release houses en mass they sell them slowly so not to create a shock. Plus why build a house unless you know there is a buyer for it.. just leave it as a plot..
Who is the 'they' referred to in title?
I was lucky enough to buy myself a 1 bedroom flat for 50k last year. It was from a friend of my dads, so i got it easily 30% off! If it wasn't for my dads friend selling at a reasonable price and not for profit, i would have to have a mortgage. Im 32, and i can tell you, my generation was NEVER meant to succeed like previous generations.
And if you do own your own home, it’ll be nowhere near as good as your parent’s generation could’ve bought on a comparable income.
This is correct. I do the exact same job, in the exact same field, at the exact same age my Father did. (It is a family business after all). He bought a 3 bedroom town house next to Alexandra Palace in North London for £108,000 in 1992. It is now worth £1.1 Million. I am currently looking at small houses in Kent or Essex, and even they are still £300,000+.
I had an offer accepted, do I go for a 2 year tracker at current rate of 4.54% with the option to switch at any time with no fees involved or a 5 year fixed at 4.74%
Don't do it. Be patient and get a lower interest rate and keep saving until then. Larger deposit = cheaper mortgages
Got an offer accepted myself in December. Less competition has its benefits. Also help to buy is help to sell.
If a house is listed at 250K in 2023 and previous owners bought it at 164K in 2016. Similar houses in the area are currently being sold
at 190K to 230K. How much would you offer for it?
Always depend on the numbers. Make sure you stress test it and make sure you can afford it if interest rates go to 8% or so. That's how I determine an offer
I'm currently buying too - sounds like this listing may be overpriced? If similar properties are being listed at least 20k less then this seller believes their property is worth more than it actually is and doesn't believe house prices are falling (which they are), essentially they're being greedy. However, If you want to live there for the next 10 years and you like the property, then you can still make an offer and see how the seller responds, don't be scared to offer 220k for example, no harm. Biggest thing to avoid is negative equity which happens by overpaying.
@@GallonsofSweat greed lol, it's not a damn charity and it's their house 😂
Hard to say without seeing how it compares to the others but could open with 210-220k.
House prices are far to high every young person would love to
Get on property ladder but many will never do so. We would
Have to build thousands of first time buyers propertys,will this
Happen properly not.
New builds are 20-25% over priced absolutely. Once again the only reason for inflation and cost of living crisis is due to greed and desire. There is no other explanation too it. Its simple
Hi Matt , first time watching your channel!
We are currently looking into getting a mortgage. We have found a house we like (not new build) was built in 2016/17 in the countryside in a very small estate. Asking price is 280k , we could afford a 20% deposit and I think we would be able to negotiate on the asking price as the current owner has a deadline to be in their new build house!
Only downside is mine and my partners credit isn’t the best (young and dumb stupidity)
We have a combined income PA of £70k roughly , and I’m still very nervous about even being offered a mortgage at all let alone 230k.
Scary times! We are currently using a broker due to me being a LTD director!
I should also add that we have rented for the last 3 years (even during covid) and have never missed or been late for a single payment of any type - our current rent is £925 so if a mortgage was £1000 or even £1100 we wouldn’t struggle to cover the difference compared to our rent amount.
Any advice?
Thanks
Matthew
Fyi where I am in the uk you are not getting a viewing on a property unless you have an agreement in principle. No agent in my area will even spend 5 minutes on the phone with you unless you can prove your money. Maybe the market moves slower where you are but once an offer is accepted you have forward your solicitor all the paper work quickly so that would include your advisors details.
@@robertjones2053 oh really? Where abouts are you? We viewed a house twice , spoke to a mortgage broker and had a offer in principle within 2/3 days. Offer accepted on the house , and now we are just waiting to hear back off the mortgage broker/lender.
@@robertjones2053 apparently we will hear back off them with a answer within the next 5 days. Solicitor is already in place etc aswell , just waiting on confirmation of how much we can actually borrow now from the mortgage lender.
@@RoyalBlueCasual Cheshire. They are still selling very fast. It is usually advisable to check with a mortgage lender first to see how much they will lend before checking out houses. Good luck I hope it goes well for you. 😊
@@robertjones2053 we are Shropshire 😊 yeah we have a mortgage in principle , just waiting to hear off them now 🤞🏻
We just need developers to build more supply.
I'm 25 and still live at home, I think I might wait a few years until getting my own place
Don’t rush, keep saving
Not just younger people struggling… I’m in my 50’s and never owned… and probably never will now - less time than younger people.
Hey Matt, if you were a cash buyer in London right now looking to invest in your first house, would you wait before buying? Or hold out and carry on renting?
If you're a cash buyer now, some good deals to be had, I think the longer you wait prices will trend downards so time is on your side but if you find an awesome place now - don't let it stop you. Especially if you're buying for the long term anyway
@@MattBrighton Great response. Thanks very much!
And in terms of supply... immigration is the biggest issue... im all up for people coming here for a better life but we also have to be realistic... we cant build enough houses to keep up and even if we did manage it would be at the expense of the tax payer and our entire countryside...
News update all the housing developers have stopped building. They are going to sit on it all and keep the prices up while the housing shortage grows out of control.
Pretty much anyone buying a house looks at it as a long term investment and expects it to go up in value... That's the bubble, You cannot have an ever increasing housing market unless wages keep up to sustain the bubble. And you cannot increase wages at the rate of the housing market increase because as you can imagine the average wage would be 60K+ lol.
You cannot even build mass housing to make up for the short fall as it will stagnate the market and put the banks/buys/owners in bad investments.
The only real practical way forward is capping rents to a % of value/mortgage payments and giving landlords some profits. Its a total mess to be honest, how will anyone in the next 10-15 years view home ownership?
is it worth selling my home at a profit, renting for a year or 2 then rebuying? i really need a financial advisor, haha, new sub btw, enjoying your content
I'm not a financial advisor but if you already pay your mortgage completely stay where you are if you still paying your mortgage get your calculator out and see how much you will pay for your mortgage and Vs rent and see if worth. A believe the best time to buy will be next year 2024 I think the prices will drop until 2024
@@sidonio123 ive alot of variables, my fixed rate expires at the end of next year, i have a flat, so i have to pay a maintainance fee of £112 a month i could be rid off , Then the mortgage as well as expensive electic bills. if i sold now it would be at a healthy profit (i think acording to the hpi) so capitilising on the high prices seems tempting, im just scared to do anything tbh lol
@@joelwilliams4682 if I was you I will see a state agent. But if you think you will get a profit sell now and buy in few years time when things start coming back to normal and buy much cheaper than now
The cynic in me thinks the government intentionally doesn’t want to address the house price problems, because if they do the negatively affect the investments of their voter base (lots of the older generation own a second or multiple properties).
We bought 18 months ago and despite a £60k deposit and above average wages we couldn’t afford a house in our area.
Also because of immigration status we took out a short fixed term and now have to renew this year, which is going to increase the mortgage by at least £300 a month.
I’m hoping things will get better but to fix the problem prices need to go down.
So I’m screwed 😬
So now everyone is saving money, no one is buying, house prices dropping, once morgage rates goes down and house prices are lower everyone will start buying and overbidding each other and house price will go up again.
In London average earners cant afford to buy new built flats, they start at like 400k where older built flats 250k, so we are screwed forever i guess, or until we are 65 years old
65? Retirement age will be comfortably higher than that by then!
Don't forget those low rates was the biggest scheme ever. They are 3 or 5 years fixed rates. Then you will be forced to pay as hi as 8% interest for the rest of 25 years left. It sucks
"You will be forced to pay as hi as 8% interest for the rest of 25 years left?" Don't be silly. High interest are here currently because central banks around the world printed far too much free money and gave it needlessly away to most people in the form of grants/handouts. Then when inflation started to rise they sat on their hands and only started raising interest rate once it got out of control. Right now by the looks inflation has peaked as all the assets driving up the inflation figures and getting passed down the supply chain have fallen massively. Unfortunately it takes 3-6 months if not longer to filter through the supply chain.
It's only high by recent standards. Historically interest rates are still quite low at c.3-4%
@@donnypump in comparison to house prices and earnings, todays interest rate are equal to 13% of 1970’s mortgage rates
@@kohtime Thanks for saying it. These bots going on about historic rates are clueless
I think interest rates have just returned to their long term average.
The issue is we had high prices and low interest rates.
Precious generations had low prices and high interest rates.
This meant similar monthly payments with lower deposits and then when interest rates dropped and prices went up, they won!!
Video for first time mortgages for 60's
Its alway been hard to buy your first house
Who wants to downgrade? Just about anyone who'd rather enjoy their life than sit in their living of their overpriced mansion with no heating just to say they live in a certain postcode. It is affordable to live and own a decent property in the UK. You have to be smart though and not greedy or showing off.
After all of that information on the causes and problems,
the massive elephant in the room with the question of supply vs demand,
was completely and utterly ignored.
Your problem is uncontrolled population increase...and that is government policy.
As is the reason those waiting lists, queues and insufficient services/infrastructure to satisfy that uncontrolled demand, is conveniently ignored.
Best thing you can do if you dont agree whats going on in the uk is leave the uk. People need house prices / rent to rise disproportionately. Homeowners/landlords rent 2nd homes or downsize to cover living cost later on in life. Essentially we are always buying or renting over priced houses in the uk because the buyer/renter is covering the costs of the seller/landlord who has a a pension that is usually too poor through no fault of there own. Living in the uk on the state pension is not great even as home owner.
As tough as it is we’ve finally bit the bullet, yes prices are high, interest is high but better than putting £14.5k a year in my landlords pockets. A tough road to get here though.
Many congrats, you've done well
This is just a theory but the price hike also a way to "improve" the town/city and pushing out the "poor" people out.
Also with the number of Chinese people coming over with BNO (mostly the rich) are targets buying up the new properties giving no chance for any UK citizen to able to buy one.
I bought my family home seven years ago, (35 now). There is zero chance I could afford my own home if buying for the first time now, despite earning £50Kish.
It sucks for the younger guys. Don't fall into the trap of blaming 'boomers' though - they had to deal with MASSIVE interest rates back in the late 80s/90s.
We are all screwed in different ways by the government of the time.
I'm a boomer, and interest rates were much higher...but prices were waaaayyyyyy lower , so all in all a much better deal. Since the 90s , rares have only kept going down cos of the rigging by Central banks ....we've had it lovely and can't complain. Who gives a shyt if mortgages were 8pc plus when home prices were 3 to 4 times income ?
@@jasbindersingh2441 hit the nail on the head right there!
Yeah, I think you missed the point of the first few minutes... They had high interest rates but a house was so much cheaper and that's why they've paid off they're mortgages
Inflation has changed everything over the past 30 years. When boomers bought houses and got £100k mortgages - that same £100k is the typical deposit needed on a home half the size
We are all screwed indeed.. just continued elite get richer and you know the rest
answer: too many people. despite plummeting birth rates 🤔
Market is completely fucked by buy to let landlords. Property is way overvalued and will crash.
God please bless us with a market crash
10,000,000 immigrants into the country.
Just gunna wait for the housing crash and then get a house on the cheap
As long as you can get the funds… financing things can get tight at that point. 👍🏻
Lenders may change their risk appetite, but on the flip side - if you're buying for the long term and you have the money ready - don't let timing stop you
13 years of Tory misery!
Always some one elses's fault grow up!
Really? I earn below average salary and have bought 3 houses in that time, how have the Tories not stopped me but they have you or whoever else?
13 years of historically low interest rates 🤷🏼♂️
"It won't solve the fundamental root of the problem"... Immigration!
You have ignored the root cause. The root cause is not supply; it's demand. The net population grew by more than half a million people last year - that was the net migration figure. That's legal immigration; people given right to enter the UK. It will be half a million more this year and so on. No amount of house building can keep up with that population increase. We cant build 200,000 homes per year, every year. Buy whatever you can whenever you can...it's only going to get worse.
o no
As with any channel, news source, you've missed the most important factor. The elephant in the room that everyone is too scared to address.
Over demand.
Net migration was over 500,000 the past 12 months!!
If you notice the first graph shows the difficulty for first time buyers and as such inflated house prices since 1997. The Tony Blair open immigration era, which we've never recovered from.
Higher demand = higher prices. To expect infinite growth in a finite environment is insane and there is now no way back.
Since 1997 houses built has been unable to keep up with net migration, let alone birth rates and growth in the UK naturally. We never voted for it, we never asked for it. But we're stuck with it.
Great to see that someone else is willing to address said elephant... Birth rates are actually below replacement levels so demand can mostly be attributed to NET Migration (with the additional SMALL factor of aging population).
You sound as if you've been following the brilliant work by the Lotus Eaters guys?
If everyone watched their podcast, the British people would be under no illusions and we might finally say goodbye to the LAB/CON hegemony! (Wishful thinking).
@@mdstreet94 I've not actually heard of them but I'll have a look.
I just do my own research and since 1997 completed housing has lagged behind NET migration by 2,000,000 - 3,000,000 depending on sources.
That is not inclusive of the data showing exponential growth in the amount of housing being bought by international buyers to rent out as an income stream. The rise of second, holiday homes bought by London dwellers, Converstaions from houses to flats/HMOs. The actual amount of completed houses that my possibly fall into the hands of first time buyers is minimal.
Over demand, not necessarily under supply (as you said, birth rates are falling) is the issue that no one will address.
2x once in the lifetime event in 3 years...covid and war in the middle of Europa. Later year MOST be better...
It has always been hard for first time buyers. I certainly spent 70% of my earnings on property in the 1990's with high interest rates!
Exactly. Difference is people just love to whine about social injustice these days.
@@ln5747 but wage stagnation has made it way worse for the current generation of young people, also it makes having a family virtually impossible as most of your wage is just going on saving for a deposit, girl I work with spends 900 a month of childcare for 3 days a week, add everything else going up it’s just a miserable time to try and plan your future if your young
10pc wasn't really high. When money has no cost ...ie today's rates ....it becomes worthless. You were paying a fair rate on a fair priced home. These days folks are paying paying pisssstake rates of a low 5pc odd on rip off home prices. I'd rather pay 10pc plus interest any day than be forced to buy in at these silly prices
100% agree with naz…it’s virtually impossible to have a family! I worry about running out of time as I can’t afford to move home, my partner and I live with my parents and are saving every penny we can find. It’s soul destroying.
@@chloes3897 lmao 😂
Truss didn't cripple the economy. She crippled the government's ability to borrow.
This chart shows people getting older. Top notch discovery there!
Kwasi Kwarteng and his brains caused the spike and disrepute in interest rates. No accountability. Disgrace!
Who advised him? He was a puppet for Liz trust so get your facts right James and go and learn about politics history which will enable you to leave sensible feedback!
@Dar irrelevant as to whether he was a puppet or not, he was the chancellor, he had the final say, still the Tories and their incompetence.
they don't care about the young or people that are poor. Time to leave the country
They should bring in the same thing as China. One child per couple. We have too many people for our little island. It’s so sad to see how quality of life has declined over the last couple of decades :(
You say that yet the native population is declining due to low birth rates, while the government is letting millions of immigrants in. Surely you're trolling or just extremely naive?
They are not going down. Still going up
wrong, just look at all the stats of home prices compared to last year and all the reduced listings on rightmove
@@GallonsofSweat not wrong. I don’t live in the uk. They keep going up for me
@@rossgallie1 he’s not talking about outside the uk clearly. So he’s not wrong.
@@whitneydavies8616 we are in the uk. So not wrong 😁
interest rates were going up long before truss, do not try to blame all this on truss, it has been 10 years in the making. by simply blaming truss, you are forgiving all policy for the last 10 years.
The fact is, the same week truss announced her policy, Russia declared it's mobilisation of 300,000 soldier, the fear of Russia is a far bigger cause of the markets instability than truss, this is proven by the fact that EVERY market globally went wild. Truss's policy would never have caused a global ripple. a fear of a new world war with Russia however. would 100 percent cause it.
Don't worry; the older baby boomers will have started the great wealth transfer, so to speak, passing on their homes and rental portfolios to their millennial grandchildren renters, and all is well.
So when was it easy even my grandad struggled to get in the ladder
It’s not, people just need to do 60 hours a week for a couple of years. Most people are only working 35 so no wonder they can’t afford anything. They are being out competed by everyone else willing to do the work.
'property developers' and too many people (immigration)