How do youngsters get onto the first rung of the property market here in the UK?

Question

I have two teenagers. Here in the UK, property prices keep rising well above inflation. Soon,my kids will immediately be saddled with huge debts to pay off.

Do any of you guys from other countries have similar problems regarding the price of property for first time buyers?

What are your average house prices for a kid's first time property?

People in the UK, do you have similar problems in your area?Please state the area concerned.

Answer 1

here in northern ireland we have the same problem. our house prices are the fastest growing in europe according to news this week. the average price of a very small terrace home is about 170k. this means a young couple would need to save about 17k for a 10% deposit. almost an impossible feat as they are probably paying rent at the same time. i feel sorry for young couples today. my own home cost 39k 8 years ago and is now valued at 180k. crazy. if there is a crash they also face negative equity and thats a scary prospect too. i'm just glad i'm not starting off now. good luck to your children

Answer 2

I think they'll find it very difficult, unless you have a few grand to spare.

They'll need to live at home for a while whilst saving like mad. Then, when they have about £20,000 between them they could by a flat together. They'll still have a big mortgage but I can't think of any better way to get them started.

I know loads of people (not just youngsters) that will never make it onto the property ladder. It's just too expensive to make that first step these days.

Answer 3

I'm 25 and in London. There is no way i could get onto the property ladder without winning the lottery. Or your kids could try getting together with some very trustworthy frinds and get a joint morgage. apart from that you just need a massive ammount of money.

Answer 4

Get your kids to set up ISAs. You can hold £7K per annum in ISAs, up to £3K in cash, up to £4K in stocks and shares.

Both your kids are teenagers, so realistically you're looking at a medium term investment. (i.e. more than 5 years before taking out the money) I'd say an ISA with a long notice period- if you make the money less accessible it'll stop them splurging it on crap and will give a better rate of (tax-free) interest on the cash part.

I would recommend the stock/share part of the ISA is invested in property shares as these will track the property market and therefore make a good investment in a rising market whilst you save the money.

A market crash such as the one which happened in the US is unlikely here in the short term as new housing is required faster than it is being built and our population density here is much higher, with greater restrictions on building in green spaces.

Answer 5

Well my son and both nieces only got on the property ladder with our (the parents) help. My sister gave them both 50,000 pounds for a deposit from an unexpected inheritance she received and I sold a flat I had in Athens and gave my son 50,000. It was the ony way.

But in my case instead of him having to pay 800 pounds a month rent, we thought it better for me to help him and for him to pay the 800 to a mortgage, which in then end (God willing) the flat will be his.

It is very very difficult and with no help from some source almost impossible for the yougnesters today.

Good luck to your kids.

Answer 6

I work for an investment bank in the City of London. I'm in my late twenties and I take home a very good salary, even before my bonus.

I can't even afford to buy a two bedroom flat unless I move to Kent.

Answer 7

Im only 25... i saved a huge amount for my deposit... im lucky enough to be on good wages... but my mortgage is for over 105k... its a huge struggle to be honest.. but im glad i did it! looks like i wont be moving house till im at least 80 tho ;-)

Answer 8

With parents help. And that is before the heating bills arrive.