No Rest for Mum and Dad

3 million young adults still live at home, because they cannot afford high rents, deposits and mortgages. That means poor Mum and Dad cannot retire for many more years
And often when break ups occur in relationships, Children move as well
Successive Governments never get the Housing Shortage controlled.
They do not take into account the increase in population as well as rehousing Immigrants
Furthermore the allow Companies and private individuals to snap up New Homes as ‘Buy to Let’
for speculation, further decreasing first-time buyers chance of owning a property
This is all wrong and unfair as well

The Local Councils should all have a much larger stock of Homes to Let
Rents should be ‘Pro Rata to the occupants Wage/Salary
Some Council House Tenants in in the high income bract and can afford to buy their own home, and they still pay the same rent as a low paid worker.
Do Government Officials ever really give thought to young people who are desperate to buy their own home, or even pay a reasonable rent for a decent home as they sit in there Mansions or Holiday Homes as well?
There is not enough supervision of scrupulous Landlords either who let homes like pigsties to venerable people who are to frightened to complain, as there is simply nowhere else to go.
They should all be licensed annually with a fee to pay and monitored a swell
Admittedly, there are some really awful tenants as well.
The Local Councils own lots of large empty properties that could be turned into temporary accommodation to many families, but the would rather sell land and property to Multi-Million Supermarkets.

When will it ever change?

Re: No Rest for Mum and Dad

It always makes me laugh when May says they're building "affordable homes" they're only affordable for buy to let landlords. You'd be lucky to get a bedroom in a shared house for less than £350 pm these days, how is any young person supposed to save a deposit?

Re: No Rest for Mum and Dad

Goodness only knows.

Re: No Rest for Mum and Dad

There are numerous facets involved in housing our population, however the most obvious problem seems to me to be immigration.

How can one possibly think it is sensible to allow additional people into the country, all of whom will require housing, when the existing housing market cannot satisfy the needs of those already here.

Surely before allowing immigrants in, there should be a housing surplus across the various property types.

Re: No Rest for Mum and Dad

Housing does appear to be in a mess ...

Whilst currently flogging my own home I've noticed ..

1) A fair few ex-rental houses on the market, some still with tenants in. The estate agents tell me that a lot of landlords are not finding it so lucrative and are now unloading their portfolios. Something to do with new government restrictions and dwindling profits?

2) First time buyers , say in their 20's to 30's, are in short supply. Yet oddly .. I had a young couple view my 2 bed detached bungalow for their first home. They must have been doing well ... she stood in the lounge chewing gum and taking selfies whilst he went around with Dad, who was bankrolling him.

3) This current 'shared partnership scheme' where the buyer only owns 40 or 50% of their new build home and pays rent on the remaining half just seems a get-rich-quick scheme for builders and is over-inflating property prices.

Re: No Rest for Mum and Dad

There are new tax laws which mean that you cannot reduce your rental profits with your mortgage interest. Comes into full effect in 2019 I believe. It's been phased in. The alternative of trading as a company has I believe capital gains disadvantages and is also complex to manage. It's basically lose:lose compared to the gravy train before. So we are likely to see property prices depressed as landlords offload in a buyers market. This should create a glut of properties and a depression in house prices. Not a good time to sell. Not the best time to buy.

Re: No Rest for Mum and Dad

Firstly there's no shame in young people living at home with parents. This is surely what used to happen in previous generations.

To pro-rata rent to income would basically wipe out a large chunk of available properties from the market. Has this been done successfully anywhere in the world? We have (or had) housing benefit which makes up the difference.

Councils do licence many properties. But council tenants are allowed to sublet and all sorts. They should really stop that.

Re: No Rest for Mum and Dad

This country is going to hell in a hand basket; I don't believe any government can stop it.

Re: No Rest for Mum and Dad

Ah ... that's what it is.
You'd be amazed how many houses I've come across, some with, I'd say, a 10% reduction on their market value or bunged into an auction for a quick sale with sitting tenants in them.
Nerve wracking for the tenants I imagine if they're on a short term lease and are flogged in situ with the property.

For example near me. ... 2 bed semi-detached Bungalow. Rent £400 per month. Currently up for auction with a reserve price of 110k (should normally fetch 130/140k). Best current offer 102K.

It'll be interesting to see whether that just results in the landlords who don't unload inflating rental prices to cover their profit deficit? Further driving up private sector rentals.

The remaining landlords are going to be in a 'win win' situation.

Re: No Rest for Mum and Dad

win:win is either for owners who have no mortgage or for large housing organisations that have the clout to be cash buyers. But a lot of people with buy to lets won't be selling up because they will need to sell at least at the same price they bought at to make it worthwhile. it's a slow burn because the full impact will only be hitting profits next year. But anyone who bought a buy to let as a nest egg via an interest only mortgage could be stung.