Web Hosting Talk : Other Forums : Web Hosting Lounge : First-time buyers will need £1,000,000 to get on property ladder.

[Critic]

By Jennifer Hill

LONDON (Reuters) - First-time buyers will have to fork out a cool million pounds to get a foothold on the property ladder in less than 20 years, data showed on Monday.

The average first-time buyer home in the UK will hit the million pound mark in the second quarter of 2024, if the current trend in house price and income growth continues, according to Stroud & Swindon Building Society.

It said that would equate to seven times the average salary, projected to be 146,188 pounds by then, if earnings continue to increase at current levels.

Those in Greater London will see the average first-time buyer property price soar above 1 million pounds the soonest -- within 12 years -- if house price inflation is maintained at the same rate of the past decade.

The typical first-time buyer home would hit that price within 16 years in the south-east of England and 17 years in the south-west.

Property in Scotland would take the longest to achieve that price, reaching the one million mark in 29 years.

Paul Chafer, sales director at Stroud & Swindon, said the "shocking picture of a potential future" suggested the next generation could put off buying property or other life goals, such as marriage or children, to get on the property ladder.

"Most people aspire to owning their own home, but this research shows that our children are going to find it very difficult to get onto the housing ladder," he said.

"Even if house price increases slow down to more acceptable levels, in future first-time buyers are going to be forced to put off purchasing their first home even longer and have to rely increasingly on the 'bank of mum and dad' to help with the deposit."

The findings come after the country's second largest mortgage lender, Abbey, increased the amount it will typically lend to up to five times income to help struggling first-time buyers.

But Chafer said it was pointless to increase income multiples if it would result in consumers taking on levels of debt they could not service.

The projections are based on Office for National Statistics figures that show the cost of an average first-time buyer home has risen 11.5 percent per annum since 1996. The average income has increased at a rate of 7.4 percent per year over the same period.

Source :: http://today.reuters.co.uk/news/arti...IN-MILLION.xml



It is.....an obscene amount, outrageous.



Opinions?? Comments??

Critic,

[Webhost King]

Then buy land in the US of A. MUUUUCH cheaper, and you can find niche areas that go up more drastically in price (if they are wedged between two growing areas, won't say more than that).

Buying land is always a good idea. Always. So even if it's expensive, unless it's WAY overvalued, it's a good choice.

[nuthin]

Yeah it's like that where I am from. (Perth, Australia)

Not as bad, but the average price of a median house now in Perth, WA is pushing towards $500k and they predict soon that Perth will overtake Sydney in regards to Australia's most expensive property prices. (http://www.theage.com.au/news/Busine...661607197.html)

I'm 22 years old, 23 soon and plan on getting engaged and looking for a house mid next year and it's truly going to be difficult for us first home buyers.

Just glad I got into SEO when I did really, as money isn't going to be too much of an issue for us, however people of my age csimply can not afford it, which is truly a shame....

Price of everything is sky-rocketing where I'm from!

[Webhost King]

Originally Posted by nuthin

Yeah it's like that where I am from. (Perth, Australia)

Not as bad, but the average price of a median house now in Perth, WA is pushing towards $500k and they predict soon that Perth will overtake Sydney in regards to Australia's most expensive property prices. (http://www.theage.com.au/news/Busine...661607197.html)

I'm 22 years old, 23 soon and plan on getting engaged and looking for a house mid next year and it's truly going to be difficult for us first home buyers.

Just glad I got into SEO when I did really, as money isn't going to be too much of an issue for us, however people of my age can not simply afford it, which is truly a shame....

Price of everything is sky-rocketing where I'm from!

My god, $500k for a median? How can Aussies afford that?

Geez, maybe it's time to get into building houses haha. By hand. Heck, if you could build a house in 2 years just yourself and one hired hand, with rented equipment.... you'd probably turn 100k a year profit. Or in America, you can just hire 14 illegal immigrants to build them in a year and turn around and sell it for huge profits. Haha. Or where you live you can get those immigrants legally probably. Heck if we're gonna be economic imperialists might as well enjoy it!

[nuthin]

Originally Posted by Webhost King

My god, $500k for a median? How can Aussies afford that?

You tell me !
Most people can't.
I can just imagine the mortgage repayments that most people will have to fork out on the average loan size.
Really I can't wait.. ! (not!)

[Dan541]

sorry lag caused me to double post

[Dan541]

Originally Posted by nuthin

Yeah it's like that where I am from. (Perth, Australia)

Not as bad, but the average price of a median house now in Perth, WA is pushing towards $500k and they predict soon that Perth will overtake Sydney in regards to Australia's most expensive property prices. (http://www.theage.com.au/news/Busine...661607197.html)

I'm 22 years old, 23 soon and plan on getting engaged and looking for a house mid next year and it's truly going to be difficult for us first home buyers.

I was trying to buy my first home aswell but now that plan has gone out the window
at this rate ill be lucky to get a caravan. I will probably have to leave Joondalup behind and head either noth or south to the outskirts of the metro area.


I know people who were on the property ladder but got forced out due to both rate rise and the cost of fuel, all any first homebuyer wants is a place to live other than the street.

I personaly think overseas investors should be banned from buying property and restrictions placed of investors who own more than one.

Its only fair that the little guys be given a chance!

[nuthin]

And people such as the government wonder why depression rates will continue to rise amongst young people. <25

Guess you can always live at home til your 40? !
Unfortunately in Perth at least, I don't think employers are forecasting in any of the economy changes and as the price of everything goes up, WAGES are generally staying the same. With workplace agreements it's even worse for people.

This will be the lost generation.. for more reasons than one I predict.

[Aussie Bob]

Originally Posted by nuthin

. . . I'm 22 years old, 23 soon and plan on getting engaged and looking for a house mid next year and it's truly going to be difficult for us first home buyers.

I feel for ya. We got our place valued the other week, and it threw me a bit at how high the valuation was, and property is supposed to be cooling down! Young couples are having to start out life with a huge mortgage, and that means both have to work, so there's more pressure. Then when kids come along, Mum has to keep working, and most of her $$ goes into daycare anyways. It's no wonder so many marriages/partnerships split up.

Just glad I got into SEO when I did really, as money isn't going to be too much of an issue for us . . .

Money will always be an issue as you progress through life.

[nuthin]

Just have to stop living the high life and knuckle down.
Easier said than done though. hehe

[Aussie Bob]

Originally Posted by Webhost King

Geez, maybe it's time to get into building houses haha. By hand. Heck, if you could build a house in 2 years just yourself and one hired hand, with rented equipment.... you'd probably turn 100k a year profit.

Yeah, that's pretty close. I could build house (well I have) with land, for AUS$500k and it would have a valuation of AUS$750k. Build wholesale, sell retail. Best thing too, if it's your own home, there's no capital gains tax when you sell.