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https://www.walesonline.co.uk/news/l...atest-21874326
Housing in Cardiff is in the "middle of a crisis", according to a sombre warning by the city's council.
I feel desperately sorry for young people, unless you're lucky enough to get help from your parents it's extremely hard to get on the ladder. I was very lucky that I bought around 8 years ago.
Since the 70s house price increases have increased massively while wages haven't (https://images.app.goo.gl/P1NT2ZDTC8VgKis98)
I think a lot of the older generations don't recognise this and wonder why young people are so angry at the state of the UK.
In this country the idea of home ownership rather than having somewhere to live has been pushed so much that everyone is scurrying around trying to get on the property ladder
In Europe there is less of an emphasis on owning a house and more people rent as rents are reasonable
What have we done since Maggie Thatcher came ?
Sold council houses
Create a free for all in the private rented sector by removing protected rents and forcing so many people to rely not on councils and housing associations for somewhere to live but on private landlords many of whom are raking in the cash
And in order to cope with an increasing population both private and public housing needs to be built in big numbers and quickly .
It ain't happening .
It's a tsunami coming .
The typical rented accommodation provided by the council run Associations is f*cking disgusting. Total wrecks, vermim, damp, you're lucky to get anyone to come out let alone make repairs. Home ownership is still what folk strive for throughout western societies, and house prices aren't coming down with interest rates at 0.5%.Originally Posted by SLUDGE FACTORY
It will get to a breaking point. There’s no such thing as exponential growth. The difficulty is seeing where that is
Can really point fingers as the WG government prioritising environment over housing. That’s fine but does have consequences
The only reason I wanted to buy my own house, is that because I didn’t want anyone telling me where I could and couldn’t live. The only problem being is that in many years into the future, I won’t get any financial benefit out of it. It will be passed on and split between younger members of the family. It just makes you think about what you’re doing from the day you took out your mortgage.
In the early 90's the missus and I and the kids were delivering yellow pages most evenings to help pay the mortgage. 15%, plus and endowment element. Made up over 50% of our income. No help from family -who couldn't - government. I think a lot of the younger generation don't recognize how lucky they are.
How do you not get this? Many people my age will never get a mortgage or never be able to afford a family. Lucky my arse.
'The gap between average income and average housing prices changed between 1985 and 2015 from twice an average salary to up to six times average income.'
https://en.wikipedia.org/wiki/Afford...United_Kingdom
In some places in the past few years the income to house/flat price ratio has been into double figures.
The council don't run the housing associations but they do have a say in allocations
The two issues are
1. The lack of supply. The state doing everything it can via planning to stifle development and stop new builds.
2. Empty nesters sitting in 3, 4 and 5 bedroom houses that would be better utilised as family homes, freeing up more housing. Its not we don't have enough bedrooms in the UK, we have so many houses with bedrooms not used.
The two issues are
1. The unaffordable cost of housing (sale and rent).
2. Disincentives to council house building and land banking by developers (the lack of supply).
When I was 26, I bought a flat. The Building society wanted 10% deposit, and would lend three times my salary of £10,000. So, my dad gave me the £3000 deposit, then three times £10,000 meant I could borrow £30,000. I got a place for £30,000.
Try that these days. Even a cheap house in Cardiff is at least £200,000. So you need a £20,000 deposit, then you need to be on £60,000 a year, to qualify for that three times your salary thing. Not very likely at a young age.
Agreed. The lack of supply (caused by an archaic and not fit for purpose planning system) is keeping prices artificially high.
Developers cannot build because they cannot get planning. Councils do not build because mass social house building is only required in extraordinary times.
I grew up in Ely then Rumney, from the moment I understood my parents were paying someone (the council) to live in the house, was the moment I said to myself I will never ever do that, I've made some poor life decisions along the way, wanting to own my home wasn't one of them.
Maybe the world has changed since I stopped working in public housing 7 years ago - but at that time developers were definitely land banking, and (along with their supporters in the Tory Party) blaming planning regs. No doubt planning systems and regs can be improved, but my experience was they were put up as an excuse for developers wanting greenfield sites not brownfield, and resisting requirements to include section 106 affordable housing in some developments. It was mostly a smokescreen to maximise profits.
Councils do not build council housing because they are unable to fund them (despite the self-financing Housing Revenue Acount reforms of a decade ago) and because they will still be subject to Right To Buy - meaning the public (councils and remaining tenants) will continue to subsidise a section of new owner occupiers. Mass social house building is needed now.
The other recent factor affecting housing costs and supply - and a reason for owner occupation in the UK dropping from over 70% in 2003 to under 65% now - is the 'buy to rent' phenomena. Vast numbers of homes - new build and ex RTB council in particular - have been hoovered up by the new breed of landlord who then push up rents and collect from the affluent who can afford them, or those on housing benefits (so the state, or taxpayers, have to afford them) for those that can't. People in the middle get squeezed.
This is what happens when housing is seen as an investment asset, for personal or company benefit, not as a home. That mindset is much more prevalent in the UK than most other parts of Europe as Sludge said - even Romania with its' 97% owner occupation rate!
I was 25 when I bought my flat.
I had finished uni in '77, got a job base in London but was immediated seconded to Edinburgh for 6 months - on expenses, so barely touched my salary of £3000. While there, I worked 9 to 5, then had computer time of 8 til midnight, so a shed load on overtime.
By the spring of '79, I had £3000 saved. I bought a 3 bed flat in London for £14000. Took all my savings, but it was the best thing I had ever done. 5 years later moved within London, selling flat for £23000, buying house for £29000. Two years later got transferred to Cardiff, sold London house for £63000, bought Cardiff house for £48000., where I still live.
No help from parents, just a combo of long hours and a decent slice of luck.
I've been dealing with the local council this past two months regarding alterations to my house and to be fair to them they have been O.K, they didn't go the extra mile and make it clear what I need to do preferring to refer me to literature, fortunately I bumped into someone who works in the planning dept. who gave me an avenue to pursue which got me a quick decision and saved me a nice wedge.
Like the last 30 years plus
Don't know why you wouldn't get a mortgage, only reason would be credit or lack of employment. Mortgages are extremely easy to get compared with 30yrs ago. Big difference was you started with a cheaper property/flat and slowly moved 'up the ladder'. Today people want to move in to their 'forever home' straight away. It's hard nowadays, but it was hard then, too.
https://youtu.be/1by0-nkKOTs
So you're saying everyone who is employed can get a mortgage easily? Is this a joke?
Where are you getting this information from that people want a forever home right away? You're talking nonsense.
Just take a read of this - https://uk.finance.yahoo.com/news/uk...060042411.html
Also did you take a look at the average wage vs house price graph I posted earlier? https://images.app.goo.gl/P1NT2ZDTC8VgKis98
Don't forget the NIMBYs.
Buy-to-let landlords are the worst in my experience. They spend the absolute bare minimum maintaining their properties because the rent goes straight towards paying their mortgage each month.
Landbanking is a myth
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