Up to a third of millennials 'face renting their entire life'

MadMike

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I think there should be exceptions, not a blanket ban. If you live and work in a foreign country, I think you should be entitled to owning a home.
It will never happen in this country though. All those rich feckers would see their property value plummet.
Legal permanent residents (of any nationality) will be allowed to buy. They are only stopping rich foreign non-residents buying up properties through investment vehicles and driving up the prices. While also creating a shortage of rented properties in the same breath by living those properties empty.

Entirely sensible and we should have that here too.
 

Silva

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I can't correlate a single one of those generation nicknames to an actual decade. The only time they're brought up is by silly wankers who think you can generalize every single person who was born at a certain time and think that they can argue some kind of point over it.
They vaguely make sense. Losts kept being killed in wars. G.I's were conscripted to WW2 but a lot of them when the war was being won. Silents were poor af and basically grew up with nothing and had little to no political power (this is the worst one in terms of generalisation). Boomers were part of a massive birthing boom and population growth. Millennial came of age around the year 2000. Hashtag came of age on social media. It is pointless to generalise beyond the time period they came of age in though.
 

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They vaguely make sense. Losts kept being killed in wars. G.I's were conscripted to WW2 but a lot of them when the war was being won. Silents were poor af and basically grew up with nothing and had little to no political power. Boomers were part of a massive birthing boom and population growth. Millennial came of age around the year 2000. Hashtag came of age on social media. It is pointless to generalise beyond the time period they came of age in though.
I prefer to judge people on what shows they would watch on TV and video games they played when they were a kid. If you watched a lot of Disney Channel stuff then you're inferior to me.
 

Grinner

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There has been a ton of chinese investment in California with cash buyers driving up prices in the hot areas of the state and making a fortune in rent. It's a nice way to park cash and get a decent return but fecks over the local populations.
 

Vidic_In_Moscow

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There has been a ton of chinese investment in California with cash buyers driving up prices in the hot areas of the state and making a fortune in rent. It's a nice way to park cash and get a decent return but fecks over the local populations.
Yeah those Chinese and Russian sons of bitches have been doing it in London for years (decades?). It's such a sweet deal that on the new build apartments they don't even bother to rent them out, just buy whole blocks of them and let them sit empty. It's a disgrace really.
 

Steven7290

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There has been a ton of chinese investment in California with cash buyers driving up prices in the hot areas of the state and making a fortune in rent. It's a nice way to park cash and get a decent return but fecks over the local populations.
In Boston as well, it has been made nearly impossible to get any decent houses around here. A basic two bedroom, two bathroom condo now cost upward of 500k even in suburban area 20 miles from the city.
 

Florida Man

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There has been a ton of chinese investment in California with cash buyers driving up prices in the hot areas of the state and making a fortune in rent. It's a nice way to park cash and get a decent return but fecks over the local populations.
Hawaii has had similar issues, but in conjunction with many mainlanders moving to the islands and driving up real estate prices.
 

Vidyoyo

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Yeah those Chinese and Russian sons of bitches have been doing it in London for years (decades?). It's such a sweet deal that on the new build apartments they don't even bother to rent them out, just buy whole blocks of them and let them sit empty. It's a disgrace really.
Olympic Village in Stratford felt a lot like that when I lived there.
 

dumbo

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Down there in hobbit paradiso you can kind of have a go at social policy. But that aint gonna cut any black truffle mustard up here in our capitalistic nuclear inferno. What Tory then Labour then Tory - with a handy from the lib dems have done with housing in this country is fecking despicable. They/we sold our kid's futures for a fast buck/ruble/shekel.
 

One Night Only

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This is becoming an existential problem folks. It's not good. This article is US-centric but don't be surprised if we'll see the same problems across the West.

https://www.kold.com/2021/07/28/min...ford-two-bedroom-rental-anywhere-report-says/
0% deposit mortgages should become a thing again, enough people have paid rent for 10 years straight but never been able to save for a deposit because of you know, living. Surely if you've paid rent for 10 years a bank can take that "risk" on you anyway.
 

Dan_F

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0% deposit mortgages should become a thing again, enough people have paid rent for 10 years straight but never been able to save for a deposit because of you know, living. Surely if you've paid rent for 10 years a bank can take that "risk" on you anyway.
The problem is no longer just the deposit though. Family houses in a lot of areas are well over the amount that banks will be willing to lend to a couple who are below the median wage.

A household income of £50k a year will mean a bank will lend around £220k for a first time buyer. With a 5% deposit you won’t even get to the average price for a 2 bed in my area (not the south east).
 

One Night Only

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The problem is no longer just the deposit though. Family houses in a lot of areas are well over the amount that banks will be willing to lend to a couple who are below the median wage.

A household income of £50k a year will mean a bank will lend around £220k for a first time buyer. With a 5% deposit you won’t even get to the average price for a 2 bed in my area (not the south east).
That's not the problem in my area tbh, but I understand that's the case in London's / Manchester's and the other big cities.

It's ridiculous how it's got this bad, they seem the build a shit ton of houses in my home town but no fecker can afford them, there isn't even a massive need for new houses in my town either. it's a really strange market.
 

17Larsson

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I'm currently contracting on three new housing estates. 420 houses in total. 390 of those have been bought by vulture funds.
That's 390 brand new houses for rent only
 

Dan_F

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That's not the problem in my area tbh, but I understand that's the case in London's / Manchester's and the other big cities.

It's ridiculous how it's got this bad, they seem the build a shit ton of houses in my home town but no fecker can afford them, there isn't even a massive need for new houses in my town either. it's a really strange market.
I left my home town under the assumption I could always afford to move back if I wanted. Unfortunately Cornwall has exploded over the last two years and it’s almost on a par with where I live now.

The problem there is Airbnb’s and holiday lets. So many houses that go onto the market are just being bought up for that purpose, mainly well over the asking price and without even being viewed.
 

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This is the problem. There needs to be intervention to prevent housing being treated as an investment.

Something drastic needs to happen like preventing people from renting out more than a certain number of homes and to stop companies buying up residential property as investments. Nothing will happen though because the drastic action that is needed would cause housing prices to crash and owners won’t accept that… even if it is what the country needs to happen.
 

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I left my home town under the assumption I could always afford to move back if I wanted. Unfortunately Cornwall has exploded over the last two years and it’s almost on a par with where I live now.

The problem there is Airbnb’s and holiday lets. So many houses that go onto the market are just being bought up for that purpose, mainly well over the asking price and without even being viewed.
I’m from cornwall too and was speaking to a mate the other day and he said a few weeks ago across the whole of cornwall there was 13000+ AirBnB properties available to rent and just 62 available to rent on RightMove. That’s the whole of the county.

For anyone that doesn’t know cornwall, it’s pretty big and spread out and transport is shit. Public transport is ridiculous. You couldn’t rent in north cornwall and commute to south cornwall without losing 3+ hours of your day, more like 5 in the summer. Public transport would be more like 6 hours and cost you £15 a day and good luck getting a job in cornwall that justifies that expenditure.
 

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What are the limits to someone renting out a place on Airbnb in the UK?
 

Dan_F

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I’m from cornwall too and was speaking to a mate the other day and he said a few weeks ago across the whole of cornwall there was 13000+ AirBnB properties available to rent and just 62 available to rent on RightMove. That’s the whole of the county.

For anyone that doesn’t know cornwall, it’s pretty big and spread out and transport is shit. Public transport is ridiculous. You couldn’t rent in north cornwall and commute to south cornwall without losing 3+ hours of your day, more like 5 in the summer. Public transport would be more like 6 hours and cost you £15 a day and good luck getting a job in cornwall that justifies that expenditure.
Yeah it’s crazy. The only reason I’m considering moving back down is friends and family, plus I have a job where I think I’m performing well enough for them to justify me being able to work remote permanently.


What are the limits to someone renting out a place on Airbnb in the UK?
I’m sure others can answer better, but as far as I’m aware you pay extra tax if it’s a second property, or you are getting a mortgage with the purpose of renting it out. It clearly isn’t high enough though.
 

golden_blunder

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At one stage renting out Airbnb was a huge issue in ireland due to the housing crisis. That was pre-pandemic though so can’t remember what happened to the legislative change they were talking about
 

One Night Only

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Aye, stop people having 3rd and 4th homes, have a cap on holiday homes for each town or whatever. Housing is essential so those who want to buy to live in should get some kind of boost or priority without prices being fecked by rich knobs.
 

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I'm currently contracting on three new housing estates. 420 houses in total. 390 of those have been bought by vulture funds.
That's 390 brand new houses for rent only
They just need to ban the bastards. Dublin's fecked as well for a lot of people trying to buy a house and if you're single forget about it.
 

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I'm currently contracting on three new housing estates. 420 houses in total. 390 of those have been bought by vulture funds.
That's 390 brand new houses for rent only
Yep this is a huge issue. Big apartment buildings in London get built and I know of entire floors that get purchased by Chinese investors who are so pleased with their investments they do not even bother to rent them out.
 

sullydnl

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So if up to 1/3 of Milenials will never buy a house that means 66.6% will

Currently 64% of people buy their own house
https://www.ethnicity-facts-figures.service.gov.uk/housing/owning-and-renting/home-ownership/latest

So is the problem for milenials that only 2 and a bit percent more of them will own a house and that's unfair because they feel entitled to more

Or that it's bad that more people will own their own house because property is theft or summat?
That research you posted seems to be detailing how many people owned a house during a two-year window between 2016 and 2018. Not how many people owned or will own a house at some point in their lives, which is what the 66.6% figure you mention for millenials represents.

I mean as per that research, 79% of white over-65s and 69% of non-white over 65s owned their own homes. So already higher than the predicted 66.6% for millenials, even without adding in how many owned a house in the past or will own a house in the future.

Or to frame those figures in another way: the rate of home ownership for over-65s was higher in that two year window alone than it is predicted to be for millennials over their entire lifetime.
 
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Deery

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I'm currently contracting on three new housing estates. 420 houses in total. 390 of those have been bought by vulture funds.
That's 390 brand new houses for rent only
That’s shocking they really shouldn’t be allowed to do this it’s totally immoral, they seem to be doing the same in Derry now to a lot of the houses are been bought up by companies from Dublin.
 

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So if up to 1/3 of Milenials will never buy a house that means 66.6% will

Currently 64% of people buy their own house
https://www.ethnicity-facts-figures.service.gov.uk/housing/owning-and-renting/home-ownership/latest

So is the problem for milenials that only 2 and a bit percent more of them will own a house and that's unfair because they feel entitled to more

Or that it's bad that more people will own their own house because property is theft or summat?
At least you got that great zinger in at the end of your post, it almost makes up for the fact that you clearly didn't read or understand the 3 year old article that started this.

The think tank, which aims to improve the standard of living of low and middle-income families, said 40% of "millennials" - those born between 1980 and 1996 - were living in rented housing by the age of 30.

That was twice as many as "generation X"
- those born between 1965 and 1980.

"While there have been some steps recently to support housebuilding and first-time buyers, up to a third of millennials still face the prospect of renting from cradle to grave.

 

Havak

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I might be way off it, but I just can't imagine how someone could rent for their entire life? Obviously, circumstances differ, but I'm more akin to people earning average wages who after paying rent and bills can save very little. And let's face it, most of that 'disposable income' is spent on other things anyway rather than going into savings. Some of it on things that aren't necessities for sure, but you need a bit of enjoyment in life! Imagine after paying off all your necessary expenses you're left with £100 every month? If you can't get a better job or education/training than what you already have, it's going to take you more than a decade to have a chance of a deposit.

Most of these people will probably rent in the hope that their parents have paid off a house and can leave it to them, but when there's potentially multiple children involved or those parents rented forever too, it gets a bit trickier.

If you aren't able to save up much through your working life, what do you do if/when you're pretty much unable in your 60s or 70s? I can't see how these kinds of people will be able to afford to rent, particularly when renting is usually more expensive than a monthly mortgage payment.

I'm so glad I managed to buy a house in my 30's, I feel lucky and somewhat secure (touch wood). Maybe I'm being too soft, but I don't think things such as owning a property if you're working full time snd can afford the monthly payments should be a survival of the fittest / richest scenario.
 

Ibi Dreams

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I might be way off it, but I just can't imagine how someone could rent for their entire life? Obviously, circumstances differ, but I'm more akin to people earning average wages who after paying rent and bills can save very little. And let's face it, most of that 'disposable income' is spent on other things anyway rather than going into savings. Some of it on things that aren't necessities for sure, but you need a bit of enjoyment in life! Imagine after paying off all your necessary expenses you're left with £100 every month? If you can't get a better job or education/training than what you already have, it's going to take you more than a decade to have a chance of a deposit.

Most of these people will probably rent in the hope that their parents have paid off a house and can leave it to them, but when there's potentially multiple children involved or those parents rented forever too, it gets a bit trickier.

If you aren't able to save up much through your working life, what do you do if/when you're pretty much unable in your 60s or 70s? I can't see how these kinds of people will be able to afford to rent, particularly when renting is usually more expensive than a monthly mortgage payment.

I'm so glad I managed to buy a house in my 30's, I feel lucky and somewhat secure (touch wood). Maybe I'm being too soft, but I don't think things such as owning a property if you're working full time snd can afford the monthly payments should be a survival of the fittest / richest scenario.
At some point you get your state pension, which isn't enough on its own but is still a big help for anyone without savings or much income
 

Havak

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At some point you get your state pension, which isn't enough on its own but is still a big help for anyone without savings or much income
Yeah, I think it's only £180~ per week here though so I kind of disregard it entirely. It'll be age 70 before my generation get it snd without a work place pension or still working part time you'll struggle, the state pension probably wouldn't even cover the rent cost alone (at least where I live).
 

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So here in urban India, there's beginning to be a similar problem. Housing loans are expensive (interest rates of 9%+ per annum) and personally I'm seeing less and less of a benefit to actually buy a home, which is a huge life goal for us.
 

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While I think the estimate is something like 70% of the MP's in parliament are landlords in some form or other, nothing is going to change in favour. The property market became a reliable get rich scheme in the 80's that lots jumped on and now their kids are inheriting the business and the banks are happy to lend to them over the average person just trying to find somewhere to live. The situation isn't going to change in my lifetime.

I'm now teaching my kids that if they need to think about their pension and property ownership as soon as the y leave school.
 

VeevaVee

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You mean an actual real problem where a small percentage are making bank hasn't been solved by the Tories and probably never will be? I'm shocked.
 

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I'm now teaching my kids that if they need to think about their pension and property ownership as soon as they leave school.
That's great advice I hope your kids take note...by the way you state that in a way which suggests it is something new?

I am in my 70's and can remember my parents drumming it into me the day I started work (at 15) Jan 2nd 1961, that buying your own home should be No.1 target, No 2 was to think about your old age and consider looking for "a job with a good pension".

As they had lived all their lives in rented accommodation and neither had held a pensionable job, which in those days was probably the only way of realistically thinking about an enhanced pension, beyond what the state provided.

I thought it worth taking their advice on the housing part and I opened a Post Office bank account in my own name (but overseen by my mother until I was of a legal age) to start saving for a home of my own. My weekly wage at that time was £3.2s.6d (as an apprentice engineer) and I looked to save 2/-per week. which I managed to do until I discovered beer... a pint of Marston's (mixed) being 1s-4d a pint, then my resolve weakened somewhat.

Unfortunately I didn't take their advice on pensionable employment until well into my late twenties. ;)
 
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LuisNaniencia

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While I think the estimate is something like 70% of the MP's in parliament are landlords in some form or other, nothing is going to change in favour. The property market became a reliable get rich scheme in the 80's that lots jumped on and now their kids are inheriting the business and the banks are happy to lend to them over the average person just trying to find somewhere to live. The situation isn't going to change in my lifetime.

I'm now teaching my kids that if they need to think about their pension and property ownership as soon as the y leave school.
Yeah me too. I want my kids to get on the market as quickly as possible.