How the Housing Market Screwed Young People
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If we drill down into the data of the UK's housing crisis, it's clear that young people face the most difficult challenges when trying to get on the property ladder. So in this video, we break down what's behind the generational inequality in the UK.
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Asking a real estate agent whether you should buy a home right now is like to asking an alcoholic whether they think you should have a drink lol. Homes in my neighborhood that cost around $450k in sales in 2019 are now going for $800 to $950k. Every seller in my neighborhood is currently making a $350k profit. Simply unreal. In all honesty, deflation is what we require. The only other option is for many people to go bankrupt, which would also be bad for the economy. That is the only way to return to normal.
Home prices will come down eventually, but for now; its best to offset some of your real estate investments and get into the financial markets or gold. The new mortgage rates are crazy, add to that the recession and the fact that mortgage guidelines are getting more difficult. Home prices will need to fall by a minimum of 40% (more like 50%) before the market normalizes. If you are in cross roads or need sincere advise on the best moves to take now its best you seek an independent advisor who knows about the financial markets
@@duane_29 Personally, I can connect to that. When I began working with "Christine Jane Mclean," a fiduciary financial counsellor, my advantages were certain. In these circumstances, I would always advise getting professional help so they can steer you through choppy markets and just give you indicators and strategies for knowing when to enter and exit the market.
@@philipr1759 I'd be glad to get the help of one, but just how can one spot a reputable one? How did you spot this Christine?
@@HarrietBemish Most likely, you can run a google search on her name and find her basic information online; you are welcome to do further study.
@@philipr1759 Interesting. I am on her page now doing my due diligence. She seems proficient. I wrote her an email and scheduled a phone call. How long do you think it will take before she replies?
Housing and rent must be addressed if the Tories want to have any social constituency under 45 y/o. Young people are sick of giving their Landlord half their income. This is the main reason why people are turning against neoliberalism. The commodification of housing and it's subsequent insecurity has been disaster for the human race. It is also causing serious resentment from the young to the older generations.
Damn right! Everything is being systematically exploited & we're questioning why we don't adopt a new system!
"This is the main reason why people are turning against Neoliberalism." Problem is that there is no large party with an alternative to neo-liberalism currently.
You grow up being told you just need to work hard and go to uni to succeed, then find out in your twenties it's all just a big set up for you to give away half your income to a landlord.
@@kevinh4869 That math doesn't check out and you have to know that by now if you've ever paused for a single moment to verify your views.
@@undead_corsair I couldn't have put it better myself. Especially in the UK when the majority of young people go to uni now
The housing market is basically a massive inter generational wealth transfer from younger people to older people. It’s utterly unsustainable.
And then politicians ask why are birth rates decreasing at an alarming rate when the GDP keeps increasing... Well you made it impossible to be a young person...
I understand what you're trying to say, I would argue it's the other way around. Who gets that house after the old people die? Somebody younger.
It transfers it from "the young" to *some* of "the old" and then from there to "the young" descendants of those. So it's both a generational and a socioeconomic siphon from the poor to the wealthy.
@@ietomos7634 If said house isn't sold beforehand to pay for social care, retirement accommodation etc.... in which case a good chunk, if not all of it, goes to the government or private sector in one way or another.
@@Goosestaf I know many people who have transferred the house ownership prior to death. It means people don't have to pay for the retirement home and they avoid the death duties.
this is the fifth "once in a lifetime recession" I've been through.
Won't be the last, either.
As someone who’s trying to get on the housing ladder, it’s always good to see the tories not giving a shit about us 👍
Labour wouldn't give a shit about you just as much.
People shit on it, but have you looked at share to buy?
@@MEHOLE "share to buy" is one great alternative the only problem is you need an upfront stash of cash including a buffer just in case you end up alone unexpectedly for a while. ( can't trust people with financial situations)
yes. neither did labour to be fair. grew up in care in West Yorks, no inheritance for me, went in to work at 16, moved to the south east. Managed to buy my house on my own (I'm 40 now).
Should add, bought my house about 10 years ago
They say you become more conservative when you age. Yet this shows there’s a luxury to be conservative if you have things to conserve, in which this government actions has denied that right for us young people.
That's becuase this government isn't even remotely conservative. High taxes, mass immigration, huge state etc. they're only conservative in name.
It could very well be that generally as you age you accumulate more wealth and that’s what makes you more conservative. Age may be more an associated factor due to this pattern.
1970: "right to buy" 2020: "own nothing and be happy, also don't forget to eat your bugs"
I'm not sure I agree wealth is a right, for anyone. But I agree completely that successive UK governments have failed to place sufficient emphasis on supporting the young into stable lives and productive work. And have instead catered to their boomer voters immediate desires.
Actually this most recent generation has been seen veering to the left as they age
Banks are screwed, Real Estates screwed, stocks screwed, what do young people now do with their spare income?
Not so true. There are still lots of viable options, stocks are even still one just that as with every investment you have to make very thorough inquiries or better still, get the services of an expert (that way, you give little room for error and still maximize time). Made my first million earlier this year this way. Good luck!
@@thesportsguruu ...Nice... I have been considering going into something productive for sometime now especially stocks with no knowledge of how to go about it... You mentioned using pros, if its not a problem, do you mind telling if you used one or recommending a good one? I could definitely use one right now... I look forward to you replying...
its crazy man
@@ecarlson8943 Yeah, I used one but that's cos I'm not so knowledgeable in the field and I battle with time constraints.
@@ecarlson8943 Not really sure I'm permitted to go into details here, but mine is Abraham Keith Adam, and you could possibly find him or other good ones through a quick search.
As someone from the UK, I can attest that it is most definitely possible to get onto the housing ladder. All you have to do is what I did... move to a different country!
Out of interest, where did you move?
@@thegrinderman1090 Canada. Now Canada does have a house price problem too but it's pretty much just limited to Toronto, Vancouver and probably Montreal to my knowledge. In Alberta it's pretty affordable, I got a 4 bedroom detached, with finished basement and a double garage surrounded by parks for $400,000, or about £250,000. The same would be about $550,000 in Calgary which is still quite affordable. Back in Bristol the same would probably be about £1,000,000.
@@decus9544 Thanks for the comprehensive response! That does sound tempting. I'm 29 now and recently moved back in with my mum to try and start properly saving money to get a house somewhere instead of being trapped renting. Not an ideal situation but I'm finally starting to feel optimistic about the future. The question of where in the world to live is so broad though, and the different potential answers so life-changing, that it's hard to seriously consider. Did you know people there when you moved? Do you have any regrets about it, or downsides you hadn't thought of?
@@thegrinderman1090 Funnily enough you're doing essentially the same as what I did between finishing Uni at 25 and the end of my first job (when I resigned and moved to Canada) at 29, though a little later. I didn't know anyone here before moving, I basically just made the Express Entry application, waited six months, and when it came through I resigned, sold what I had except a suitcase of mostly clothes (and my thesis and some material from Uni), and moved over. I have no regrets at all. The winters are a bit severe, granted, but it was one of the best decisions I ever made.
@@decus9544 Oh nice, I'm glad it's all worked out so well. Did you have a job lined up for when you got there? From a quick google search, personally I don't think I can handle that level of cold in the winter. I get quite miserable just from winters in the UK. But it's reassuring to be reminded that it is totally possible to just sell everything and completely move across the world.
I'm 32 and managed to buy my home on my own. That's not me bragging and being out of touch. Some of the sacrifices I made included being in a house share until I was 31, not owning a car until I was 32, not going out and minimised my spending, worked up to 70 hours per week consistently, not having kids. Yes it is achievable, but some of the sacrifices it takes are just not reasonable. I lived very uncomfortably for years. If I had a child, partner or dependent it would not be feasible. The expectations for what people should do are so out of touch.
Congratulations, the thing is boomers managed to do that only working 40 hours a week, in their early 20's while going out getting pissed all weekend.
I respect you for saying that. I was talking with my father about this issue last week. I am 32, I am getting married, I want to start a family and buy a house. My father, who is 65, did all this when he was 28. He looked at me dead in the eyes and said "Son, I know you want what I had, but I just don't see how it's possible". Even though myself and my fiancee both work good jobs, been saving for years now too. Unlike a lot of boomers, he recognises that this country has become too skewed to giving older people like him all the benefits.
that's horrible, and you know they will turn around and ask why no one is having kids anymore nowadays 💀
I am 25 doing the same and hope I'm not fully priced out by the time I reach your age. As a woman it is terrifying however having a stable and secure life only beginning at 30 or so, when it is considered high risk to be pregnant at 35. Life has become very difficult for our generation and even friends, ex's, people well into their 30s seem somewhat... infantilised to me? It's hard for myself to feel like an adult despite my software engineering job and independent life when I have to share a house with 4 other people like a 'student' and not have a car so asking family for lifts etc when I go back to visit them. Just feel like I've advanced without advancing, no real change to my life because it's all going into my savings pot for a house but the goal posts keep shifting further and further!
You couldn't afford to have a girlfriend, or holidays, even time to relax is a luxuary. I know what you mean. We are slowly being enslaved by the over 50's, the worst thing is, most of them don't even know they're doing it.
Bursted out laughing when he said they have Michael Gove on the job. God save Brexit.
Could be worse, could be Matt Hancock.
This, we are waaay beyond chocolate kettle levels of uselessness where Gove is concerned.
Gove may be useless but people didn't vote for Brexit on his account. Farage and Mr spineless (BoJo) were the heroes of liberty there
"one of our most capable ministers". Everything Gove touches turns to shit lol.
@@anonUK True, Matt would give you a shovel, so you could dig a hole for yourself :D (kids sized shovel, so they would save money)
The most powerfully depressing thing you can hear from young people is: “I know I will be less happy and successful than my parents.”
That’s because of ingratitude
I have highly succesfull parents and i`m certain i will beat them. What a nonsense. I already achieved a higher single day earning.
@@marsmellow1589 statistically this is very true. Majority of our generation wont even come close to what our parents had. Millennials only hold about three percent of wealth, boomers owned about 20 percent at our age. That is an astronomical decrease. This is fact, not really up for debate. Will some be more successful than their parents? Sure, but for the other 96 percent of our generation, they cant say the same.
@Cecilia Cole gen z reported that 75 percent have anxiety or depression, or both. So yeah, depressed kids are pretty common.
@@johnfisher8401 source?
I've rented 6 different places in a span of 8 years. And NONE of the landlords/property owners are residents of the UK. A lot of my friends can never afford to own properties in their lifetime but non residents are benefitting from this.
"one of our most capable ministers, Michael Gove", wow.
the real joke is that he is might actually be one of the most capable! :)
The annoying thing is he actually is
Tories are up to their Dirty tricks again. They're setting up Britain for a massive Austerity 'Measure.'
The "Hunt" for the Brexit Ex-oneration is not going so well. :-))
Nearly did a spit-take on that one. He should become a comedian…
As a 40 year old with a young family, our monthly rent is astronomical. If we could afford a 25-30% deposit on a home, our current monthly rent could easily cover mortgage payments, but with the high rent we can’t save for a deposit. Catch-22. I’m now getting used to the fact that we’ll never own our own home. It hurts though when people 5-10 years older than us are now almost mortgage free.
Feel your pain, mate. It sucks.
Might house first, then children have been a better option?
😂 I’d be having children in my 50s! Like I said, resigned to the fact that owning a home isn’t going to happen. We don’t all earn £100k+ per year
@@onlyme8117 Right, they should just toss their kids in the freezer for a bit, couch surf to save up, then thaw them out for the new house! Prior generations didn't have to choose between a home and children. Think, Mark, think!
What about a big loan to get the house and then working 30plus years to pay the loan off. Is that possible in your country? I'm not from the u.k. and in my country it is sort of impossible, but not all countries suck as bad as mine...
I'm a software engineer and my partner is a psychologist, and we honestly have very little hope that we'll ever be able to afford to buy a home. It sucks when we've both made so many sacrifices throughout our 20's to develop our careers and it doesn't even matter because our landlord takes such a massive chunk. Makes me just want to do some easier job if it's all pointless anyhow
Do you live in London?
Must have plenty coming in with them jobs, couldn't you live in a caravan for a few years and save up a deposit?
Really? You can buy 3 bedroom houses for £350-450,000 in zone 4 of London and as a software engineer get a multiple of 5 for your combined income with your partner. Zone 5 is even cheaper and 1-2 bed flats more so. I don't know what a software engineer makes but a clinical psychologist starting salary in the NHS is £40-47,000 per year depending on where in London her job is. Before anyone starts ragging on the salary starting point, a phD is required for the job.
invest in crypto.... easiest way to get a massive deposit.
@@steph6109 Payscale says that the median income for software engineers in London is more than £50,000 per year before taxes, so they together probably earn more than £90,000 a year and they say they cannot afford to buy a house, that is probably not true.
as an Italian under 30 I tell you. welcome to our world! here practically nobody is able to buy a house without the help of their parents. low wages, high rents and no career prospects have led to a generation that no longer has children. the positive side is that sooner or later there will be so few of us that inevitably there will be places for everyone :D
Yet I see you have empty towns in the countryside in Italy. How much those cost?
@@MbisonBalrogThe problem in the countryside is that there are no jobs
@@nguyenxuanhieu1527 but Italy not huge. Just commute.
If you use google earth and measure the distance, to go to the cheap and affordable places, you need to go about 30km from where your job is, now you should try to think about going back and forth every day, taking 1 hour each time. see . At that time, there must be someone at home to take care of the children. The reason why more and more women have to work is because the husband's salary is not enough to take care of the whole family@@MbisonBalrog
'one of our most capable ministers: Micheal Gove' I snorted my fucking tea
Honestly if he'd said Hannibal Lecter I'd have more confidence in him.
You should try snorting cocaine to understand that sentiment lol
That only tells you how bad the rest of them are.
@@archvaldor To be fair Hannibal Lecter was a pretty competent guy.
@@iantellam9970 If compared to the current lot, probably he was...
I'm 36 and a father of two. What I see and hear is only how this painful issue will keep my family's life miserable. No solutions on the horizon whatsoever.
The very same situation here in the NL. Salut si baftă
Tell your kids to buy a house together and support them when you pass away 2 homes for 2 problem solved
@@lonelylovely1176 This is the backup plan I figured out myself after COVID. Yet it doesn't change my own life much.
What do you do for a living out of curiosity?
@@zatarawood3588 I do carpentry for a living.
I remember pulling 48-hour + work weeks with exhausting 16-hour door-to-door days (travel) as a security guard in 2019/20. It was hard not to be bitter about the fact that I'd have to fork out 55% + of my take home JUST to rent a one-bed apartment nowhere special (or close). Honestly just feels impossible to have any real peace of mind when a supposed human right is astronomically expensive and dependent on you fighting like hell for a "lucrative" opportunity and/or skimping like a lunatic.
When is housing a human right? You can live in the forest if you don’t like this system
@@NicEeEe843oh how I wish I could just make a lil Ted Kaczynski cabin somewhere, if only the gov would actually allow it. Nothing is held in commons anymore, England hasn't got the right to roam let alone set up a lil place and live of the land as best u could.
@@NicEeEe843 what a ridiculous thing to say…
@@NicEeEe843 Alright Charles. How about YOU do some work for once.
Do you ever get the feeling that the shit slingers are the ones that have everything. Therefore it wouldn’t benefit them for these things to boil over
I’m 20 and so I’m Gen Z and to sum up how everyone I know in my generation feels about the Conservatives I know of at least 2 fights that started in secondary school because someone called someone else a Tory. This is obviously entirely anecdotal but it is indicative of how badly the Conservatives have lost my generation. Being associated with that party made them want to fight each other because of how despised they are.
What young people need to do collectively is participate in the democratic system (i.e. vote). You get pissed on by governments because you are not a key voting group due to your lack of engagement. Elderly people are a key voting group which is why they get (mostly) pandered too.
Losing a generation of individuals who are too addicted to TikTok to vote isn’t going to change anything. The Tories goal is to attract their typical voter demographic (which is the older generation)… they don’t care about 20 year olds as you don’t vote in high enough numbers. I’m 28 by the way.
And yet, the house prices have only gone up at the same rate under the Tories as they did while Labour were in charge.
@@zako2936 i hate both parties but tory has been in power for too long now give labour another shot i say (they will be the same don't get me wrong only under Corbyn would thing might of gotten better).
@@adamlea6339Problem is even if all of us did we are just to few numerically. And dont have wealth to influence interest groups in the first place. What i dont understand however is how the politicians expect things to turn out for them personally. If any chance occurs to take revenge on the people that caused this mess i and many others will get rid of old worthless politicians and most possibly even old people in general.
Honestly, this rubbish has made me a little cynical. I hear about how my parents and grandparents being able to afford to get a home through a non degree/craft/skill job. While I'm sitting here wanting to use my skills and desperately want a house and family....but "vacancy filled". I'm still trying and still have that spark to keep trying. But it's gets difficult at times, knowing I don't really have much of a future if I don't get the 'big job'. I also understand the Cynical ageism that's been more prevalent in the past 10 years. The 18 to 35 year old generation were raised to be told we are the future and we can have a life like our parents with hard work and effort...But that was never going to happen. We had to work harder for less and get the older generation calling us lazy.
Who would have guessed importing millions of extra people (net 500k last year) who all need housing would push house prices/rent up...
@@Norf.F.C.Zoomer Pretty sure refugees arriving on rubber dingies arent buying houses for £500k a piece mate. The people / companies buying up properties to use as an investment are the issue - many houses now are bought not to live in, but to make money for someone who is already rich. As long as that continues younger people are going to be fighting an uphill battle against these profit machines.
@@vladxx2 jesus can you even read? I'm not talking about illegal immigration, just legal immigration was net 500,000 people last year, all of which need housing. 500k was not referring to the price of the house 😂 just go to 3:49 in the video, house prices literally sky rocketed in the late 90s, you know what else happened in the late 90s, Blair opened the borders, the evidence is literally right there in the video.
@VladK I don't even think companies are the main problem there. I noticed every place I rented was owned by an individual using a company. It's just the attitude now, rent out your parent's home for passive income, then sell it years later when you finally settle somewhere. Yeah, renting companies make it easier, but it's also normal people looking for extra cash. I don't know the solution, really. We are a small island with a condensed population that's rising. Building more homes will only get us so far, and people don't want to retire to a flat even if they own it. I dunno, you could make it where a house needs to be for sale if its been rented out for 5 years and the home owners not being able to inflate the price due to "potential earnings". This gives the owners a chance to make some extra money before they sell and makes more houses available. Also, you don't apply this to Flats, so property companies still have a baseline income. But I bet that idea would piss loads of people off tbf.
@@madmike1708 or just stop importing net 500k people a year...
Not only have housing prices skyrocketed, but wages and salaries have not increased proportionately. 40 years ago, someone could work a fairly mundane job that doesn’t require a lot of skill and easily afford to purchase a home, whereas these days the same jobs are barely enough to feed yourself, and the only way for this generation to afford super expensive houses with our dogshit wages is either both partners in a relationship pulling a lot of overtime or we have to fight other potential candidates for exclusive high paying jobs.
Who would have guessed importing millions of extra people (net 500k last year) who all need housing would push house prices/rent up and salaries down...
@@Norf.F.C.Zoomer afaik the rate of population growth is far lower today than it was in the past, we need immigration to grow the economy because people are having less kids because either they don't want them, they're doing other stuff, or they just can't afford it
@@zeahhhh we don't "need" to grow the economy. How much impact does the UKs GDP matter to you as a person, it doesn't, same for 99.99% of us, if our GDP is 2% higher next year there will be zero noticeable difference. This is even assuming immigration does grow the economy which is highly debatable, might line the pockets of the rich but it definitely suppresses wages for natives.
@@Norf.F.C.Zoomer discussing anything in youtube comments is a waste of time, apologies for your time
@@zeahhhh well it is if you lack valid arguments, as you clearly do lol
american anecdote on how bad things are here: my mom grew up on welfare in the 60's, grandpa worked at a gas station... he still owned his own home and could afford to give her his convertible as a graduation present that exact house is now so expensive that getting a loan for it requires you to be in the top 1% of all US households, likely with a pair of six figure earners not a great neighborhood and it's like 20 miles out of the city
What state is this?
My parents growing up in their 4 bedroom house with a garden: We were poor because we only had a black and white TV Me with a flat screen TV: imagine if I could afford a house that wasn't a tiny 1 bedroom flat with neighbours below and above me
I am 36 and live with my partner (couldn't even afford to rent privately if we weren't a couple). We are the have-nots. Both parents live in social housing and despite being on the social housing list for years we aren't moving up the list. We both work hard and it's gutting having to move every 6 months - 2years. I even have to make sure i keep a week of annual leave back each year just in case we have to move again. It affects your mental health and you can not really call anywhere a home. I just want long term stability. I don't think that is too much to ask. I try not to become bitter about it, but it is hard sometimes. There is no way i could raise kids like this so we have both decided we won't have any. I hope for future generations, like my nieces, things improve for their sake.
I feel so sorry for your situation. I hope you can pull through. As a 19 year old this makes me want to leave the UK even more honestly.
I see your predicament as something loads of young people are in. Trying to buy a house/flat, in this day and age is a nightmare. The government, never gave a thought to young people of today, when they sold off council stock at rock bottom prices way back in Thatcher's reign. Now, we're seeing the results of the effects of artificially inflating the market. It's tragic.
No one asked you to live in the single most expensive housing market on the planet. If it’s too much move somewhere else
@@d.prymaka9884 well am 17 and I can advice you to move out of cities like London and go to smaller cities or countryside towns the houses are really cheap like 500 a month and they are also big
There won't be any future generations if you don't reproduce - newsflash. I honestly believe that there is an element of deliberate policy behind this, ''Eugenics'' and trying to engineer it so the poor don't breed as we're soon to be made redundant and replaced by AI
It feels like rent is so high to ensure that people can't afford to save up to buy their own home, forcing them to rent forever. As a graduate who has lived paycheck to paycheck for the last god knows how long it can tell you it's impossible to save even a little bit with the way things are at the moment. I've had to move back to my parents because my house mate moved out and rent is impossible on my own. It's just throwing money in the bin and getting nothing in return. Landlords are useless as well. I gave mine 10s of thousands of ££ and during the 5 years I lived in my house all he did was install an extractor fan in the bathroom. The money literally just goes into their bank and the renter gets nothing in return. It's criminal.
It is. Very happy for you that your parents are able to take you in, that should hopefully help re-coup your losses! I am devastated that I don't have the same option, it really is not about how hard you work, but how 'lucky' you are. Unfortunately my parents have lived in a different country and had minimal relationship with me since I was 12 years old or so. I work in tech so my only hope is really, really trying to advance as quickly as possible and maybe even take a crappy manager job (I prefer programming!!!) just to get the higher pay and hopefully help me outpace my room rent, but it is very hard.
@@MoniiChanTheUnicorn yeah I'm very fortunate in that aspect, your situation doesn't sound fun. The system is just set up to make sure we fail at the moment and theres little we can do about it. I'm going on to do a PhD at the end of the year for the next 4 years and it pays peanuts, not looking forward to trying to make that work financially. 2 degrees in biology and can't even afford rent. Fuck this system😂😂
I think it's more simple than that. Rent is so high because it's what people are willing to pay, as they haven't many/any other options.
'Willing to' doesn't really apply when it comes to necessities.
@MerlynMusicman I get what you mean. It is coerced, but still. The value of anything is the upper limit of what someone is willing to pay. My only point was that rent is not being priced highly via a grand plan to keep renters trapped. It's much simpler and less insidious than that. More money immediately for no extra work. If landlords set a lower price, they would still get a steady stream of renters. In fact, increasing the average renter's wealth by lowering rent would increase the number of people looking to buy, thus increasing property prices and making landlords wealthier.
We need to improve our planning laws too. Most flats that are built are done solely to attract the wealthiest in society, so developers always build the minimum amount of affordable homes as it increases their profits. Locals are basically being told to move out of cities to give way to the richest, and it doesn't help when so many flats are built purely to attract wealthy Chinese & Russian people.
See, that’s the tricky thing. The people/companies that own homes want prices to continue to go up. So they do things like make up Zoneing laws, prevent building more homes, and buy more homes so they can rent them out. Most if not everyone in charge of things want ever increasing home prices and less homeowners. You have to up root the entire system developed specifically to prevent people from owning and creating affordable homes.
I'm not an economist but I can tell you what I've seed in real terms as a mid-40s person who came to housing market in the early 2000s after a college education (UK). Housing has not been "affordable" for 20+ years now. House prices in the "good times" go up, in the bad times they don't come back down as much. So when they were going up and up and up on a monthly basis between 2000 and 2005 they became affordable only where there were two people earning a reasonable income. Its a really simple metric - the average size of mortgage (in total and by virtue the monthly payment) in comparison to average monthly income. Even in the dark days of the early 90s it wasn't as expensive as it is now. So we reach this wonderful new world that apparently we're striving towards then house prices will go up even further (far outpacing earnings) and be yet even less affordable. Basically, it's barely affordable for me and its entirely unaffordable (or will be) for my kids.... In even shorter terms, it's F'd.
meanwhile my relatives grabbed nice hampstead mansion for 5m, 10 years ago, now it costs 14. imagine, even after paying the loan interest off, they earned like 500k per year just by having it.
THIS. In the early 00s housing was expensive in the major cities in the US, and we (my Latino-Caribbean community ) all heard the stories of expensive housing in London, Bristol, Manchester, etc. Housing crashes mean nothing if banks don't loan to people who are willing to buy somewhat cheaper houses and mean double nothing to those who can't afford to move.
Encourage your kids to become doctors, & aim for consultant level ideally. Then they can earn a massive NHS salary, whilst never actually having to be there as they can go down to Harley Street and do private work too, or as us regular people would call it 'moonlight' on the job. Then remind your children of your hard work and dedication as a parent and get them to put you up in their beautiful detached property where they should have a cleaner, & deliverroo drivers brining around cooked meals, meaning you can rest your weary bones at the end of your days!
@@zatarawood3588 I've heard worse ideas! :)
@@zatarawood3588 picking occupation by salary is the most fatal life choice. Because no money matter when you have no life to begin with.
Problem is that rich investors can buy homes. Homes should be only buyable for people who live in them
this
yup, ppl from Hongkong, china distorting the market
@@Al-vw8qt western rich investors also exist lol
Not to mention "housing flippers" who take both old buildings and new builds, "improve"/redecorate and then sell for a big price increase.
@@sunscreenhoarder6558 What's wrong with that?
This is happening in several countries. Same points being made here are being made in the USA. My gut is screaming the questions that should be asked are "what entities are buying houses?", "Are there investment companies involved?" and "Where is the money coming from to buy you the stock of housing?". This is going on with too much similarities.
I know that in quite a few countries (Canada and the UK for exaple) super rich corrupt officials from China are buying A LOT of flats and houses as investments. They then let these homes sit empty. The main reasons for this is that you can't own property in China (you only pay to be allowed to rent your property from the government), the economy in countries like Canada and the UK is a lot more stable than the very unstable Chinese economy and the governments here in the west allows them to do so. It's not uncommon for these people to buy a lot of flats and houses even before they've been built. As a result the supply for the people actually living and working in these countries is reduced. Unfortunately politicians here in the west don't seem to mind though.
The first house I bought needed fixing and I paid 6000 pound for it. Spent a further 2000 pound fixing it up. 40 years later I saw it sold for 280.000. Absolutely crazy.
real estate market is a mechanism for transferring money from the non home owners to the home owners. It's trickle up economics basically.
When people can't afford the things it doesn't trickle up anymore....
@@davidty2006 eventually it just becomes the real estate investors transferring money between themselves.
Might as well just cut out the middle man: just take new cash from the mint and give it directly to landlords.
"One of our most capable ministers, Michael Gove" I genuinely nearly spat out my tea at that 😂. Gove? Capable?
cringe pfp
It’s by default.
most capable- this just means that most of the rest are worse
Also important to consider that if your parents had you when they were 30 something, on average they will live until they are 82. Which means you do not stand to inherit until you are on average 52 years old... If they have multiple children, you will inherit a fraction of their wealth and share with the other children. Despite the 'will-have' group being in a relatively good position. I think it's fair to say its still quite poor. Saying this as a firm 'won't have'.
It is also very ghoulish, basically waiting for parents to die…. parents may feel pressured into an early trip to Switzerland
It really does suck that I basically have to wait for my parents to die to be able to afford a house. I don't want them to die, but I do want a house. Even then I'm still splitting it with my sibling so it'll be a down-payment on a house, but that will be significantly more than most people it seems
Don't forget there will only be about £17.50 left for you and your sibling to split after your parents are forced to sell up to cover care costs in their elder years...
The thing is this is not just UK. This phenomenon is everywhere in big cities. For individuals who can't afford it in big cities like London, I would say the option really is either rent, save hard for a couple year, get a partner to buy together or move to smaller cities where the house price is still quite affordable for average salary people.
Its also a huge problem here in Czechia. I think it is a world-wide problem actually.
"or move to smaller cities where the house prices is still quite affordable for average salary people." the problem is that we are running out of those type of cities here in the uk. the only place like that where i live (south west England) is Newport in wales. everywhere in England is too expensive village town or city.
@@accountreality1988 there towns up north like Barrow or Middlesbrough …
Something people also don't talk about is under occupied properties. Older adults bought the larger houses under thatcher. They now live alone and have no intention to down size as it's been their home their whole lives. More single people live by themselves than previously and so demand has increased disproportionately to population growth.
I am one such person. I started with a 1 bed house and upsized to a 3 bed house. I have visions of meeting a woman and getting married eventually thus sharing my home with a partner but that never happened. I also thought the extra bedrooms would be useful if any family members wanted to visit overnight (we live 240 miles apart) but that has never happened either. If I move in the future I would downsize to a smaller property as my house is too big for my needs. Even downsizing may cause undesirable side effects to first time buyers though as it will increase demand for smaller properties which may push up prices further. What wasn't mentioned in the video is people with wealth buying multiple properties to let out and how much effect this has had on house prices.
@Calmlocket Interesting you talk about the lack of available property for elderly people. Whenever I have browsed on RightMove looking at smaller cheaper properties, there frequently seems to be a fair few retirement properties or properties with an "over 60's only" requirement on the market.
Why should such people downsize if they don't want to?
@Calmlocket I do not support the idea of social housing. I do not see why people should be subsidising the housing costs of others.
@Calmlocket There's no need for people to be sleeping on the streets. The government can and should provide basic shelter, basic meals, training & job seeking support in exchange for public service duties. That far, and no further. I do not support the idea of social housing. I do not see why people should be subsidising the housing costs of others.
This is an amazingly educational video. Which discusses complicated concepts in a simple manner so anyone can understand. Good work!
6:44 just couldn’t help but laugh seeing that distinction between the “will haves” and “won’t haves”. im most certainly a “won’t have” seeing as my family has no savings or assets and we live in social housing… after university, i had two job offers - one for a high paying job in finance and the other was my dream job in the games industry. i just could not justify choosing the latter knowing it would dash all hope of purchasing a home in my 20s, because it paid hardly anything. i also didn’t want to move out for my first job and start renting when i had to option to stay with my parents and save up. it’s just insane when i reflect on how the course of my entire life has been affected by this housing crisis. growing up in the UK as a child of immigrants, I was told this country was one of opportunities for all. but it doesn’t feel like things are much better here than in my parents home country anymore economically, where there is a wealth divide and hardly any socioeconomic mobility. anyway. if you’ve read this far, i wish you all the best in these trying times ❤
Scariest video I've seen all week, and I have a horror channel.
From 2015 - 2022 I have been messed around many times in buying my own house that I'm planning to leave Britian at the end of this year with things not getting better anytime soon. I'd rather live overseas and rent initially rather than wait forever just to live with a mortgage in this embarrassing country. Well done government, you've failed me. I hope you future young people will succeed in the UK where I have not hopefully with a better government.
100% share your sentiments. I've given up all hope of making a life here and I'm now planning to move overseas in the next 2 years. I wonder how many thousands of young people will be the same as us.
I’m from London, doing the exact same thing as you and leaving, so are 90% of my friends. It’s impossible without generational wealth
@@reffusion4228 It's interesting to read these fellow replies, makes me wonder if there will be a noticeable shift in the next year or two with so many Millenials and Gen Zs feeling left behind with life progression and instead of putting up with it, we'll just pack up and leave having been taken for granted and the government feeling like we have nowhere else to go.
Mate, there is nothing wrong with leaving a country such as UK. You can have a better life, eat better foods and meet better people. Cant lose much :)
Out of interest where are you aiming for? My skills aren’t good enough for the obvious destinations, but I have an EU passport so am looking into there.
All of my frustrations in the housing market perfect illustrated in this video. Thank you greatly.
I am 50 and can't afford a first flat and most of my friends too, stop making it all about just young people; some middle-aged are struggling too!
Old people aren't sexy, therefore they don't count.
What's interesting about the interest rate argument is I've heard it about the tech bubble as well (see SVB). Cheap money for those that can get it led to rampant speculation, or in this case cheap mortgages which pushed up prices. We can see the effect now with so many people facing a black hole as their fixed rate deals run out this year.
I've never even seriously imagined home ownership as a practical aspiration. My parents are pretty young, so they actually represent some of the earliest people to encounter this generational problem. They've rented their entire lives, so obviously it's not practical to expect my bank of mum and dad to set me up for a mortgage. They still give me some support so that renting a decent room in a London flat doesn't mean I'm having to dig into my savings and I'm grateful for that. But man I know there are also so many out there who's parents can't offer support or aren't willing to, and they never got an opportunity to save some money like I did for a short while. I'd be at my financial limit without the modest but crucial help my family has given me. Maybe one day I'll be able to believe that I could own a home, but right now it just seems way too out of reach. Hopefully the tories finally have their reckoning and we start to see things shift in some way. I really don't know if Labour will actually be able to bring the change we need, but we've not got any other options, and I don't have much to lose.
It's so sad we live in a country the allowed these to be normalised expectations :(. Annoyingly and sadly I don't think the housing crisis (and by that I don't mean shortage of houses) is able to be fixed by any political party, it would require a ground level realisation that financially starving your fellow countrymen for your own personal wealth is very quickly a race to the bottom.
I hear you, but for us Gen X'ers Labour really screwed the pooch for us. They set a precendent which really set the tone for the years after the "credit crunch". The people who had money took advantage plus the rest. Now we are where we are. Not enough housing, too many people and too few holding all the keys to the housing market bubble. They will protect that at all costs. Yes its very much a cut off your nose to spite your face atitude the generation before mine had/have. But its effects are still happening today and are siginificantly worse now as the gap just widens due to greed and money printing.
If your parents have a bit of money then you should get out of here especially if you have nothing holding you back like a home or family. The quality of life is awful. To illustrate, many polish builders who came here post 90s to do construction have gone back home as they think they have a better standard of life back in Poland! & they are probably right in that assumption)
I'd say the green party is probably the only party that would want to see the shift through, the labour party as it stands is another right-wing that benefits from the system. Maybe if Corbyn was at the Helm but I don't have any faith in Starmer or that fractured party to do anything.
Exactly... now think of all the kids whos parents are not so good and might even abuse or exploit them... how do these children start bettering their lives once they reach adulthood? Most of the time those new young adults dont have anyone else to rely on so they are alone trying to get by.. its damn depressing man....
A point about paying the landlord who is a member of the older generations. It's important to notice that private landlords are being shunted out of the market by corporations and you can see the government starting to assist in that push.
I'm 26 years old. I work at tesco express as a customer service assistance. I work everyday from 6am to 10pm. Brought 2 houses already. Looking to buy 3 more. London is worth the struggle.
Worth higlighting areas such as the English Lakes, which due to explosions in holiday lets alongside rising home prices, now have almost non-existant housing markets. Talking recently to the owner of a pub in the west lakes, they were having to slash food serving days to just 3 a week, due to being unable to find staff to work front of house. This country is severly broken
Housing should be viewed by society first and foremost as a human right and a necessity, not as an investment vehicle or asset. Treating housing as an asset only means making the whole housing market into a pyramid scheme, which you are forced to join because it's cheaper in the long run (if you can afford to) join it than not to join it, and only tightens the rope even more around the neck of future generations of renters and prospective homebuyers. Please, please read Cory Doctorow's brilliant and short "The Rent's Too Damned High" for the best breakdown of the insanity we are forced into by the housing crisis.
Unfortunately as we enter the digital age property no is becoming financialized. The world economy will contract and so with ones with money are ploughing it into assets.
Should transportation also be considered right and exactly what kind like car, bicycle, trains, horses.
Great video. Same problem happening here in the states, but not nearly as bad as London.
Hi - I appreciate this honest take - Thank you!
House prices went up: a) when mortgages were based upon two incomes rather than one b) when the banks decided to get in the mortgage game c) when the banks decided they would get rid of the unofficial cap on how much they'd lend
Now that both adults in a household need to work in order to afford to pay the mortgage, this has manifested itself in forking out for very high childcare costs for those who cannot get help from grandparents.
Mass immigration starting under Tony Blair?
This is absolutely right. Better pay equality for women has been a major factor here - a classic example of unintended consequences of well meaning policy. A home is typically the most important thing a couple ever buy, so it makes sense that both will work hard to pay for it. The finance system then responded to this increased appetite and ability by offering services which perpetuate it.
The decomodificaton of housing is desperately needed now, hardly any young people with help from their parents can't afford to buy. We need to also provide people with a wide range of housing options like midrise flats in suburban areas to ease the crisis
You know how you do that, by not importing 500k net people every year.
@@Norf.F.C.ZoomerThat no. Is certainly not true. Immigrants are not the problem, conservatives always will point to a marginalised group of people to blaim for the country's systemic issues. We take in far fewer people than other EU nations like Germany regardless. The main issue is stagnant wages and a lack of new affordable housing that young people can buy
@@daniyalzuberi5441 Not even british, but increasing demand with the same supply isnt helping.
@@Norf.F.C.ZoomerStop trying to scapegoat immigrants. The problem is systemic. Fix the system. I say we introduce progressive taxation for every additional house/flat owned beyond the one they reside in. We also need to facilitate investment in SMEs and local businesses, so better off people can channel their savings/investments in that direction rather than towards properties.
@@thecrimsondragon9744 well, whilst I’d argue that immigration isn’t the core reason, it obviously has a negative impact as people migrating to the UK, will increase the demand for housing. Im not “demonising” immigrants. I like immigration but it does still cause problems.
Id say for most people the economic advantages of homeownership isn't why they buy -just a benefit of it. We want to buy houses for the security of knowing you have a place that you can't get kicked out from and the dream of being able to make it your space to your own design.
Yes. All of that becomes super important if you want kids. And most landlords don’t allow pets, so there’s that too.
Housing as a home was lost in the 1970s due to, commodification and privatization. Housing is no longer seen as a place to live first but as an investment, leading to the markets current state and issues.
Could it be at least partially caused by corporations that buy properties to rent -- quite a common practice these days?
This is a huge issue in the US. I think one of the best things we could do is make it so that A) You have to be a citizen in order to buy property. B) There is a progressive tax on personally owning more than say 2 or 3. and C) Corporations can't own houses as rental properties.
And now banks like Lloyds are buying 50000 houses to rent.
It is just in generally caused by the commodification of housing. Which is a fancy way to say: Normal people want to buy a house because it is a fundamental need but rich people and corporations see it as their personal piggy bank, for them it is an investment asset. Currently the system treats housing no different from stocks or gold or whatever, whoever has the money can buy one, it is a commodity. Most people however would be way better off if we decommodified it in some way, meaning it is not just the guy willing to pay the highest price who gets it, there are other, more important, factors involved in this distribution.
It’s both private and personal. 25% of over 65’s have at least a second home they rent out. Those are the houses the younger generation should be buying. Add to that we build ~400 less houses a day than 50 years ago.
Andrew. The corporations are funded by the ultra rich who buy assets.
The main joke about all of this is that the older generation use our rent money to pay there mortgage on the house we are staying in. some even calling it House Hacking. We need to make ownership of more then one house illegal. Every time I've rented, its been the landlord's second or third house.
Well not to be cheeky, but it would not be their main home would it!?! Basically what you are saying is that you want to rent from the government directly or from a corporation? Be careful what you wish for. Council homes usually come with more issues than privatised homes, and who knows how a corporation would treat you. Stop demonising landlords, they are not all bad.
@@deedee8740 no, if you want to rent, it should be a room within your current house, subletting. Anything else is the "cheeky" thing. As you put it
I've been saying this for so long. Policy for home sales to go to those who need a home first rather than landlords building their asset portfolio. Or better ban private landlording unless its non for profit. Extreme, but we are in a crisis.
I mean this is part of capitalism. Your rent is money circulating in the economy of your country so it probably would not be made illegal but maybe your governement can impose higher taxes on persons who own multiple properties. I imagine that might reduce the issue. I am not educated on this topic so I dont actually know. So take this all with a grain of salt...
Great piece
Same thing in the Netherlands. I'm in my thirties and alone and it's practically impossible to buy a house. Which means lots of expenses, no dog, no long term investment, etc.
"Most capable ministers" "Michael Gove" Pick one.
I mean, he didn't say that Michael Gove is very capable, just that he is the best they've got...
@@HeadsFullOfEyeballs very true!
😂
Our most capable minister, Michael Gove is on the case.....god help us
I am 27, with my partner we were very lucky we bought a 2 bed terraced house in the southeast for around a quarter of a mill. Its ridiculous though as I had to save super hard buying nothing but the basics and not having a social life. We are on average wages but no one should have to live like that to get the bare minimum of a house and the next generation will really struggle. Things need to change
As a student of Urban Studies housing is a critical issue often discussed. In regards to house prices, I would argue that the initial rise of prices in and around the 80's-2000s was tied to monetary policy. As people were able to borrow more and take on more debt, prices increased to match the increase in available capital. After that, however, the rise was continued by the emergence of late stage financial capitalism. The rise of finacialization and neoliberal economic policy has turned housing from a necessary social good protected by the state, to a private good seen as an investment by financial institutions looking to expand their capital, marking a huge increase again. This later stage is why monetary policy isn't having as much of an affect on housing prices now, because the price is no longer determined by the use value of the home/land in a tightly regulated government market, but by its prospective exchange value to investors on the private market. The best answer would be to re-regulate the housing market. Move it back to being a protected social good, free from market forces; either as a state provided/monopolised good or as a protected industry who's value is tied to its use value rather than its exchange value as they do in the Netherlands.
I don't think the issue is the number of new houses being built, but the *type* of them. The problem isnt a lack of 3+ bedroom houses, but 1 and 2. In my area (rural Kent), extensive building work has started to cause a surplus of 3/4/5 bedroom houses which are struggling to sell. Developers will build the minimum number of 'affordable' 1/2 bedroom houses/flats required because they dont get the huge price tags that 3+ bedroom houses do.
Villages have become wealthy commuter belts for cities. Most who live in villages now don't work in them, unless they are lucky enough to be able to work online.
@@dondoodat this
No the issue is importing 500k extra people in a single year who all need housing. Funny if you look at the house price graphs over time there was a sudden increase around the year 2000, wasn't like the opened the borders then or anything...
@@Norf.F.C.Zoomer Most of whom did house-shares so were happy with large houses, generally in urban areas. The fact that small family homes aren't being built in rural locations has nothing to do with that and has much more to do with nimbyism, crony planning permissions and keeping rural areas for the wealthy.
@@dondoodat you think that's relevant, one person renting a house or room anywhere takes one out of the market for someone native, it's very simple supply and demand. There's a limited quantity.
40 yo. My wife and I bought our house in 2015, just in time. The challenge was to recover from 2008-2011s very sparse job opportunities. The mortgage just went up a lot, thanks to Liz, but it's still marginally better than what a rent would be. We can't complain. I don't know how younger generations, poorer household or even singles will do if more house aren't built. I don't really care if my house loses value, we need it. We live in it, it's not an "investment". Only speculators have something to earn from this state of the market.
*_"The mortgage just went up a lot, thanks to Liz"_* You're a spastic.
We don’t need more houses being build all over green belt. We need massive corporations to stop hoarding property and keeping it off the market and we need a more Australia-style immigration policy.
@@Station9.75 100%. Every time I hear this argument that there aren't any apartments/houses built, I'm baffled.. 🙄 What makes people think that investment companies or simply extremely rich people won't monopolize and hoard up all the newly built hundredthousands of apartment/houses?? The problem now stems from the fact that people are greedy and the market is split up extremely unequally. Why would those people who have their great share would act different if new homes were built? Makes no sense. They would buy it all up and the situation for average people would be the same.
@@Juniperus_Godegara - People don’t think, they just regurgitate things they hear. I don’t know where these people live but new houses are being built. Constantly. And they’re always marketed as “affordable housing”. Affordable housing for £260,000? Yeah ok…
@@Station9.75 Where I live statistically less new homes are built this is true. However, it is not the cause of the housing crisis. The causes are investors/landlords who monopolize in apartments/house ownership.
I'm 31 in Wales and, due to chronic ill health conditions making sustainable employment nigh on impossible and not coming from wealth, there's no way I'd be able to get onto the property ladder when I can barely afford my rent and essential bills. Luckily I never wanted to own a home, for some reason it just never appealed to me, but it'd be devastating if I did. It's already hard enough to see peers hitting certain life milestones when you feel you're barely functioning as it is 😅
Long Covid, ME, or good old fashioned skivalitus?
i am 34, paying taxes for last 8 years and i don't see owning home in london for foreseeable future.
It's not just the younger generation, I'm 51 and am still renting because Sunak screwed up my chances of getting onto the property market with his stupid stamp duty holiday a few years ago. We need a new government, a non tory government.
Totally agree, but don't get your hopes up that there will be a drastic improvement if we get a Labour government. They can't be much worse, but you'll only end up disappointed if you let optimism get the better of you!
Unfortunately, it's not just a UK issue. Housing is also an issue here in NZ as well. There's also a whole bunch of societal effects as a result of high rent prices propped up by the unaffordability of buying homes. Young people are living with their parents for longer because they don't want to pay ludicrous rent prices. This in turn can delay developing independence, and other life skills such as budgeting. (This is partially the cause of some of the stereotypes around Gen Z/Millennials. Why bother saving for a house when you'll never be able to afford one? Just buy a nicer breakfast every day instead.) Not to mention the issues when youth have issues with their parents, but can't move out. (An example of this would be a gay person living with homophobic parents).
It's a huge issue in the US as well.
In the US you can buy a house for 500k USD in a decent enough area from what I've seen (depending on the state). In NZ if you want an average to high paying job, you have Auckland and sometimes Wellington. Both places will set you back 1.2-1.5M NZD for a 3 bedroom on a modest piece of land. If you buy in the middle of nowhere it is still around 1M NZD. Also we have much lower wages and some of the highest living costs in the world. Our mortgage rates are almost completely unaffordable nearing 8% now. The interest from a 1 million dollar loan is near the complete after tax median household income of a family in this country. You could afford a mortgage in NZ if you skip food, water, heating, medical, and transport. But you'll be long dead before you pay it all off 😂
@@randomaccount53793 I'm not trying to demean how high the prices are in New Zeeland or make any statements as to why it's so difficult. I am not trying to directly compare NZ and the US's problems in some sort of ultimate suffering contest. I'm just saying that it's also hard in America. As a young person in America it's basically impossible to get a house right now because most home buyers are older and can pay cash to buy the house outright while if you found an have a good job and can get a mortgage they won't even take your offer. In addition to that, most young people with jobs that cover healthcare and pay enough to afford that $500,000 house are saddled with debt from college. Finally those who aren't college educated will probably not be able to buy a house like that, save for some select tradesmen like electricians and machinists. This isn't even talking about how inequality can affect things or the fact that areas that tend to have the highest paying jobs (there's a ton of ranchers and farmers that do well for themselves, but most jobs are in cities where most people have to rent at high prices) also have much higher housing prices among many issues I don't have the time or comment space to go into here.
Housing shortages and high prices are happening in many areas all around the world.
It is a world-wide problem. It is terrible here in Czechia, for example.
I think a lot of the price increases are due to corporations buying tens to hundreds of properties to turn them into rentals, and private individuals doing the Airbnb thing. Each group is taking housing out of the market, the latter removing them from renting totally and usually in popular cities like London. If you can remove these two groups, they will be large influx of housing and prices should crash ... for the positive or negative.
I think a big problem is that allot of wealthy people from abroad buy houses as well, sucks that there's no law around looking after people of the UK.
This isnt new. My generation has been screwed since 2008. I turned 40 this year. Good luck to younger people - the generation in the 80s is mostly ruined unless your parents had money. They dont even care about the issue - its intentional.
Yep, I’m in the same boat as you. I’m a year older but no inheritance and spending way too much on rent to save for a deposit on a mortgage 😤
Who would have guessed importing millions of extra people (net 500k last year) who all need housing would push house prices/rent up...
"Most capable ministers Michael Gove" Ah yes, the best of the best
Glad there’s more awareness for this
Financial Deregulation in the late 90s and early 00s was a major factor in house price rises. In 2001, a 2 up 2 down terraced house was between £30k-£40k, with average salary about £17k. 3 x salary meant that such a house was affordable and there were many of them. Within a year, that same terraced house was over £100k. Average salary remained the same which pushed lenders to 5 x salary mortgages, altered affordability tests and drove a race to buy everywhere, with many being bought by "investors" with the cash to buy, pushing those who actually wanted to buy a home to live in to the sidelines. It has ruined the UK housing market. I was relatively lucky in that I was able to save £20k by living at home with my parents after University, but it still took several years to do and be able to put a deposit on a Flat, all the while property prices kept climbing into the 2008 crash. I don't see it ever changing. House prices may drop a bit but we'll never see 3x salary house prices again for the average person, wage growth is effectively stagnant. This is down to Banker profiteering and weak Governments.
Boomers pulled the ladder up behind them and now everyone else has to claw their way out. The older generation needs to be swept aside
well we got the boomer remover three years ago but everyone hid in their houses instead of letting it rip and freeing up some housing
Got a feeling the "will-have" will simply replace them :/
You left out a few factors: - The UK is one of the most difficult places to get planning/building permission. This affects construction rate and cost. - Help-to-buy schemes help first-time buyers to an extent, but they also push up the price of houses. This has been established in several countries. - Net immigration is much higher than the rate of new builds going on the market. - Solving the above will negatively affect house prices, so no one really wants to do anything about it.
- Solving the above will negatively affect house prices, so no one really wants to do anything about it. hit the nail on the head. Most of the wealth of the banks/big wigs in this country is directly tied to property value. I recently bought my first home 6 months ago (aged 31) for 430k (no help from B of M+D). I along with every other home owner would not vote for parties/policies which will cause house prices to fall (more homes being built, higher interest rates, loosening of planning etc etc). Its a problem thats only ever going to get worse - the only thing that may happen is longer mortgage terms and more shared ownership
@@Ragnarrok2023 It's less the banks and bigwigs and more average people like you. People who own their place of residence don't want their house values to decrease either. That matters in elections.
Another big factor that nobody mentions is that increases home prices is an increasing amount of realestate investors. Why buy a home to live if you can buy multiple ones and rent em out? Wealthy people usually buy multiple homes and rent them out for cash flow and asset storage. The more properties they own the less there is for common folks increasing the demand for home prices.
Why would they do that? because there is no where to make money for UK workers.
@@nauxsi What do you mean why? People buy properties to store value and rent em out for cash flow. People dont stop at one house to live, they buy as many apartments or houses as they can so they can start renting, but this means there are less houses left for people who just want a home which increases demand so prices go up.
I'm 24, almost 25. I had to move home during the Panny D during my last year of university for various reasons. Living in the South East, it's impossible to live on my own. The cost of a flat in the nearby town is the same price as a 3 bed in my uni city. Older people in my village often bemoan the lack of young people living there, and it's so frustrating not being able to say 'its just too effing expensive to live here' - there's no buses, so you have to drive. I'm incredibly lucky that I'm able to live with my parents and live a comfortable lifestyle, but it's so frustrating. 😂😭
We have an identical problem over here in the United States. I work with a lot of Millennials and Zennials, none of whom are anywhere on the path to home ownership. I'm an older Gen-Xer, and the only reason I own a home is that my ex-wife and I were able to buy a house in 2005, just before the Great Recession permanently placed homeownership out of reach for new potential buyers. During both the 2008 and Covid recessions, hedge funds and real estate companies went on a buying spree to create huge numbers of rental properties, further removing homes from the market. Younger generations are understandably angry at neo-liberalism and runaway capitalism.
Ultimately the West is heading in the direction of Latin America. Massive and permanent inequality, no social fabric, high crime, unchecked corruption, with politics lurching from the hard left to the hard right.
The first problem is calling it a "ladder". It creates an expectation that turns into policies to fullfil that expectation. All the rest boils down to supply and demand. Both politically affected. Interest rates are on of the keys as it's an asset bought almost always with long term debt.
It is a ladder. You buy a shithole to start with an then upgrade as you better yourself.
Completely agree. The concept of a ‘ladder’ presupposes unsustainable growth
In my city, 99% of the housing is for students only. 1% is for retirees 65+. It took me 2.5 years to find the horrible little bedsit I live in- which is a double room with a tiny bathroom and a tiny kitchen. No washer. The bills add £200 minimum a month. I am giving more than half my income to rent and bills. I'm getting food from a charity every week because I cannot afford groceries. I can't even think about buying a flat or house because 1) there aren't any at my affordability level and 2) I'm on disability and they won't sell to people on disability. I haven't been able to afford to put on the heating in over 6 weeks. I cannot move to a better place because 1) there are none advertised that are not for students and retirees) and 2) everything is out of my price range. So I am stuck in this horrible bedsit and unable to leave, paying way too much. The Tories have destroyed absolutely everything.
Thank you for highlighting this issue!! I’m 30 and all I want is my own place but it doesn’t seem possible and gets me depressed! How can we change the situation in this country?
You can't because the solution is "raaayyycist".
Go woke, go broke.
Leave. Seriously it’s not getting better soon if ever.
Not just the young either, people in their 30’s and 40’s are struggling with housing now and that’s a disaster for “the market is king” Tories who can’t do anything to help because they won’t do anything to help.
Who would have guessed importing millions of extra people (net 500k last year) who all need housing would push house prices/rent up...
@@Norf.F.C.Zoomer except, that’s not what’s done it. Availability has diminished due to not enough houses being built, the houses that are built being unaffordable, the increase in landlords and reduction in social housing. So far this is what I’ve seen migrants/foreigners blamed for…. You know, these migrants, coming over here…they get all the benefits. ALL of them. And you know what else? Free housing. When you and me go to the council and say “can I have a house?” They say “NO! We’ve given it to a migrant, so they can stay home and watch Jeremy Springer all day”, but that’s not all. You know how wages have been stagnating since the financial crisis? That’s all migrants. They’re coming here, staying at home on benefits in their free houses whilst taking low-paid jobs and lowering wages. But if only that was the end of it. They’re also taking all the high paid jobs and stopping British workers from progressing up the career ladder, cause of these benefits-receiving, free-house using, wages-lowering high paid migrants taking all the top jobs from British workers. Now we haven’t finished. We’re just getting started. You know traffic Jams, guess who’s causing them? Migrants. You see the infrastructure can’t cope with all these migrants coming here and that’s why the roads are always jam-packed. But it’s not the worst of it. You know why there’s increased waiting lists in the NHS? Migrants. No seriously. They all come here for free treatment and block all the beds up, so if you have an accident and go to A and E the reason you’re waiting isn’t because the Tories have closed A and E units, no. It’s cause of all these migrants coming here using it illegally. But there’s still more. You know our prisons. You’ll never guess why they’re filling up. It’s all migrants. These foreign criminals are coming here, committing crime and costing taxpayer money filling our prisons. These benefit-claiming, free-house-getting, wage-lowering, high-paid-job-getting, traffic jam-causing, NHS bed filling migrants. But…there’s one more thing. Having gotten into a “discussion” with a person online I can reveal that the reason why there’s shit in our rivers and seas is…migrants. The infrastructure can’t cope with all these foreigners coming here and spending all the time on the toilet. These benefit-claiming, free-house-getting, wage-lowering, high-paid-job-taking, traffic jam-causing, NHS bed-filling, criminals, spending all their time in prison on the toilet poisoning our rivers and seas. But, if you told that to these liberal, Gary Lineker, James O Brien, lefty, metropolitan elite types…they wouldn’t believe you. 😆😂🤣 This endless “migrants did it” is frankly getting tiresome and shows people aren’t learning from history.
One thing you didn't say was building costs, the price of materials has massively gone up also building regs make you do much more than 30 years ago. I'm doing a mid size extension plus renovation of the existing part of my bungalow and its costing me about 220k plus the 365k to buy in the first place.
This is something a lot of young people need to be aware of if they buy in the next 18 months. They will get lumbered with a big bill to bring homes upto EPC C at the time of purchase.
Me and my partner bought our first house at 25 (2018). I worked from 18 and saved everything I could. She was in uni until 22 with no money when she left. She worked and saved for 3 years until we bought our house. The fundamental reason how we managed to do it was our parents let us live in their homes rent-free. My parents told me if they saw me spend my money rather then save it for a house, they’d charge me rent. In 2018 we bought a 3 bed house for 396k. 100k deposit and around 66k joint annual salary.
We haven't built enough houses for decades . The surplus figures are wrong. In 2022 there were 204,000 houses built , 103,000 divorces and net migration was 520,000. I couldn't find figures for other factors
House prices have increased by about 450% since the nineties, and they only started skyrocketing after the government stopped building houses around the same time, I wonder if those two facts are related in any way 🤔🤔🤔 As someone who wants to get on the property ladder eventually, I've basically just given up... we need to talk about this situation more and actually do something about it, a large number of people are going into poverty these days simply because all their income is going to rent, this won't be sustainable for much longer imo
we need a £50 minimum wage so that people can afford to buy a house.
When the pound was no longer backed by gold it started losing value. So asset prices have kept in line with that. Value of sterling has dropped 50x over the last 30 or so years, property prices have gone up by equivalent 50%. Why would someone with money hold a currency that's being inflated away and losing value all the time. You would put it into something that helps it retain its value.
@@footyball66 don’t put the strain on the business owners put it on the landlords.
I don't blame house price increases, I believe its wages that haven't kept up and people have put up with that for years. My mother recently developed dementia and had to go into residential care. The sale of her house covers this not inconsiderable cost. There have been a lot of houses built close to me recently on what was previously farmland and that's more land lost for ever.
It's pretty much both to blame. Even on the cheap end they cost over 50k.
Two sides of the same coin. House price rises wouldn't be a problem if wages had risen at the same rate. It's the combination of skyrocketing house prices and dogshit stagnant wages that have gotten us into this unholy mess.
Its not just the younger generation, almost all my friends rent and we are mostly in our 50's. When I went to get a new house I had about 3% deposit and the house was £185k, by the time I had the 5% saved the house jumped to £215k. The lady at the office said because of the help to buy scheme the demand went up, so the prices had to go up as well. I argued thats just profiteering and has nothing to do with demand, and it certainly was not what was intended for those on the help to buy scheme that they would suddenly pay jumped up prices because of it. The government has allowed builders to charge what they want. New home prices are a great way to cap all the other prices, but the government kept on letting it slide for 2 decades now. My motto "If the government can't control shelter, food and energy prices, they are not fit for office".
Simply amazing display of avoidance addressing the population growth since the 90’s! Housing is a COMMODITY, can you do a video on when demand exceeds supply? It might actually be useful!
Housing problems have to be tackled in the sense that the public needs to view housing as more of a commodity than an investment. House prices will never come down if society expects it to always increase. Sure it's good for home owners, but there are more generations of us to come and young people are just going to enter a game of Monopoly where all lands are owned and houses have been built, ended up paying everything and owning nothing.
I think this is also a question of how much the older generation really actually cares about the younger generations. Given that the older generations are the largest voting, majority. And that most of our politicians, both in the US and UK are older. Maybe, in my opinion, if they truly care, they would probably do something to stop anyone who already owns a home, or stands to inherit a home, from purchasing future homes that are being developed. They should be exclusively for those who don’t have.
It's not even that. Simply say £5k council tax for any property empty for 9 months without valid reason.
People commenting about the tories pushing up house prices but it was actually when Labour got in to power in the late 90's that house prices exploded reaching the highest in 2009 just at the end of Labour's leadership.
Property prices as a multiple of average annual salaries - remained consistent over many decades around the 3.5 x mark …the normal multiple used by mortgage providers. Even in 2000 in Essex you could by a decent modest house at 3.5 salary ….e.g. £75k house on £23k at the time. A 5% deposit would under £4k - (a couple of months wages) The same house today would be £350k over 10x average wages and requiring a 5% deposit of over £17k (over half annual salary to save)
Landlords are buying up all the houses and then charging ridiculous rates of rent so there are less houses to buy and the money that you would save for a deposit is being eaten by rent we need to have limits on rent and the amount of properties landlords can swallow up no one can afford the mortgages cos it’s harder to save
Why then are landlords suddenly greedier now than they were before? Your explanation does not make sense. If you ignore basic economic principles like supply and demand you will end up making ridiculous claims like that.
Lots of landlords are selling up actually
Most landlords are actually selling up due to the changes in tax laws. The increase in interest is exacerbating this trend, leading to a massive shortage of rental property. This shortage is driving up rents.
@@BG-th1ti Low interest rates have made it easier and much less risky for landlords to buy up large swathes of housing thereby increasing demand.
@@alexandersvarfvar473 So you are just going to ignore the six hundred thousand extra people we have to build homes for every year.
For each additional home you own the council tax should multiply. Companies and corporations should be banned from owning homes/flats. Limit AirBNB to 1/4 of the year max rentals. Otherwise the social contract of this country is completely broken.
What social contract?
Part of the issue is mortgage providers giving out mortgages that far exceed people's ability to pay them. When my dad bought what ended up as the family home in the early 1990s, he got special dispensation for a 3.5x salary mortgage (the standard at the time was 2 to 3x salary). From the late 1990s onwards we saw mortgages at 5, 8, 10, and more times people's combined income. This helped drive prices up (and was by no means the only reason prices went up), since there was the "money" to pay for the house, and people became less financially secure. Now interest rates are rising, those mortgages are going to be unaffordable. Also factor in the buy-to-let market where the wealthy can outbid a potential homeowner, interest rates now rising so landlords after a profit need to increase their rents by more than the interest rate rise, new homes becoming smaller and smaller to fit more onto the same amount of land but still costing more and more, and it's no surprise that younger generations are feeling a double squeeze. We need a realignment of property prices, social housing at a fair price and standard of occupation, rent controls, and a limit on the number of properties people can own.
It’s exactly the same in Australia it’s incredibly hard for the younger generation now to buy a house even rents have gone through the roof Australia was once known as the lucky country in regards to home ownership not anymore!