How Much More Can House Prices Increase?

[dave50]

With wages not keeping up there must come a point where first time buyers can no longer afford to get on the property ladder, consequently those who wish to sell cannot move up, so the whole thing will come crashing down.

[ummmm]

Dave - my mother has always worked. Never heard of latch key kids?

[barry1010]

My mother always worked, too. I was another 'latch key kid'.

[dave50]

Yes umm I have but they are more prevalent in recent years than they were decades ago.

[jno]

jno jnr returned from university, got a job, worked hard, bought a house with his girlfriend - most of the money came from him and he lost a lot of it in the divorce, so he started over again, remarried and now has a nice flat overlooking the Thames. It can be done.

The Bank of Mum and Dad helped with the odd thousand over the years but in no way bought the property for him, it's his and his wife's efforts.

But the long-termmeaning of all this is that, increasingly, it will depend on the Bank of Mum and Dad and property will concentrate even more inthe hands fo the rich.

Blame the person who torpedoed a stable housing market in the 70s by giving away cheap homes (that belonged to other people) as an election bribe. Damn socialists!

[pastafreak]

My daughter and her partner didn't have any parental help when they bought a small £400,000 flat in London almost 2 years ago. They have an excellent combined income, but she was also paying off a large student debt. They did have a gift of money from her grandmother which helped them get on the property ladder a bit sooner.

[curlygirlies]

PP 10.45 Yes you are correct I got it the wrong way around. My dads annual income was three times his mortgage not the other way around.

[bednobs]

if your income is three times greater than your house price, why wouldn't you just buy a house outright?
i'd have to be earning nearly £1m annually to have an income 3x higher than my mortgage

[Smowball]

Ummmm - that’s amazing your son has done that - well done!

[ToraToraTora]

It is a ridiculous situation that there are people paying £1000 in rent when they could buy the place for a mortgage that costs half that. What we need is a game changing bit of thinking from the gov, a bit like TGL's scheme for council house purchase but for people renting privately. I haven't worked out the details but there must be some way we can address this silly situation. Eg Force lenders to lend if you can demonstrate that you have been paying more each month than 150% of what the mortgage would cost. That's just a quick one off the top of my head ok, not a detailed study + proposal.

[Prudie]

Back in the 70s and 80s the rough guide was you could get a mortgage for 3 1/2 times your salary and most people could find something to buy on that. For the average earner today that wouldn't even come close to enough to buy something. I bought a cottage in the 80s for £9K, sold it about 10 years later for £47K. It was for sale on rightmove a year or so ago for £260K....

[ummmm]

I'm lucky. We're mortgage free. Both of us bought houses when we were young before the prices went stupid. What my son has just paid for his house is astonishing. It's a lovely house but....

[THECORBYLOON]

"Eg Force lenders to lend if you can demonstrate that you have been paying more each month than 150% of what the mortgage would cost. That's just a quick one off the top of my head ok, not a detailed study + proposal"

Would that not encourage collusion with landlords?

[ummmm]

Anyone watch the Scum Land law programmes. People are living in squalor.

[ummmm]

And thanks Smow. He's almost finished decorating as well. The boy doesn't sit on his bum. :-)

[LadyCG]

The value of my house has effectively doubled in 2.5 years, but we have extended and renovated to the point it would be completely unrecognisable to the previous owners.

A 3-bed semi up the top of our road the other day went on the market at £360k - nothing special about it, it was a bit of an oddball house actually and quite basic - it was SSTC within 6 days so I daresay they got over the asking price for it. I dread to think what the run down pit we bought back in November 2018 would cost now, and building materials have also sky rocketed. We were wise to move when we did.

[webbo3]

I was paying 17% mid 90s, it nearly killed me, we have a place in Bristol called Bradley Stoke, at the time it was known as sadly broke because for many years everyone was in negative equity, happy now tho, 2 to 3 more payments and Im mortgage free.

[youngmafbog]

It's simple supply and demand. There is not enough housing stock (habitable) in the UK in the right places and with the Governments open door policy on immigration it means the situation is compounded. This is why it is important to have controlled immigration.

Prices will level out once people cannot get a mortgage, I dont think we are there yet.

//Force lenders to lend// You damned Commie ;-)

[roadman]

so really to answer the question not much more as you can see from the comments if someone lives in rented accommodation its near impossible to save enough money for a deposit on your own without help especially if that person doesnt have savings and has to live hand to mouth

[youngmafbog]

//that time has already come and gone unless you have family money//

Nonsense, My youngest bought a £320K house a couple of years ago when she was 24 too, with her husband (24) just like others on here. Son have her friends.

what kind of job does he have and how long has he been working?
Both in IT, working since left Uni, although both worked part time during that period too. They didnt go out and saved.

//Still living with parents whilst he saved this 30k? did you charge him rent since he has been working? //

No, they were renting, just under £1K a month.

// as i say unless you have family money or unless you sell guns on the dark internet its not affordable //

Rubbish, where there is a will there is a way. You need to get of your backside and make it happen, but that does mean no latest phones, no fancy cars and no lavish holidays or clubbing/drinking or sma
king (anything).

[roadman]

"working since left Uni"

So they left uni i assume no later than the age of 18 and in 6 years whilst paying £1000 a month they managed to save up enough to but a 300K+ house whilst also paying off student loans and not only that a mortgage company actually lent them that amount with no proof they could pay it off i actually find it hard to believe "couple of years ago" what like 10?