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I saw on the news earlier that the fact people here can't afford to buy their own homes without parental support is becoming a major issue. Most people I know rent their homes, and the few that do own them either had money from their folks, moved back to their parents rent-free for a few years to save the deposit, or had inheritances. Personally, I can't see how I can EVER afford to buy a little flat of my own; I don't mind renting but I'd love like to stay somewhere long enough to call it home.
In Europe most people rent; they have long-term leases which means that people can often stay in the same house for most of their lives - but because we don't have similar systems over here, you can find yourself moving constantly (ahem!) There are Government schemes for rent-to-buy etc, but the waiting lists are staggering, and they select 'needy' people first. I'm not needy but I still need a home!
Because I'm a freelancer letting agents require 3 months bank statements, letters from my clients stating how much they pay me and a guarantor! This means that even my renting options are more limited; there's fewer private landlords around as well so even finding somewhere decent to rent is difficult. With studio flats/bedsits renting for £500+ a month, 1-bedroom flats at £650+ and 2-bedroom places going for at least £850+ a month, there is almost no way that I will ever be able to live on my own which is very depressing.
So because I'm single I have to either spend literally ALL my income on rent and bills or live with other people - this has been fine so far, but I'm not so appealing once I get into my forties. I think my plan will have to be to save enough money for a 2-bedroom place (I'd need around £1800) then find a suitable flat-mate. This would mean that I get to choose who I live with and can have a cat; which is clearly very important to me!
In my opinion I should be receiving discounts or rebates from the government anyway - I don't have a car, am not obese, don't drink, don't smoke, rarely fly, and have no children. Therefore I am not using much of my NI and tax contributions; I'm not a burden on the NHS, my carbon footprint is negligible and I'm putting money into the economy - I don't take a lot but also don't get any perks for being so 'good'!
So this year I will be saving my arse off; I've not long set up my business so I won't know how long it'll take me to find the deposit and be able to comfortably afford the utilities, the wi-fi, food and other personal bills, but this year I'm going to make damned sure it will happen... wish me luck.
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I think you are very unlucky that you live in one of the most expensive places in the UK, it's absurd that I live just along the coast where you can buy a nice little 2 bed cottage for 125k that would set you back at least twice that in Brighton, and then some.
ReplyDeleteI bought my first house in Brighton just after the last recession when it was still affordable, but even then I had to take out 4 car loans to get the deposit together ( erm... I can't actually drive ) and for the first 2 years, after paying bills, mortgage and essentials - I had £60.00 pcm left - no wonder I was in debit for years.
I think that things will remain relatively stable for a couple of years, so in many ways you are in a very good position - probably better than in the last 5 years, and banks are starting to look at people in 'our' type of industries more favourable again, but get on every waiting list and contact all the associations regardless, you never know - look at it as a project and set yourself a 2 year target to get into your own home, you always strike me as a level headed and motivated individual.
I know you have probably worked all this out for yourself - but it's worth saying that I'd be more optimistic about the future than you could have been 12 months ago.
R
I'll happily wish you the very best of luck with this.
ReplyDeleteI have to say, though, I agree whole-heartedly with the European system that you mention - I've never had the burning desire to own, though you're right that it's the ability to settle that's most important.
And it would be only fair of me to admit that I've been through the whole property-ownership thing so at least I can say I've tried both options!