Millennials to get £10K "Citizens Inheritance"?

[Supercilious Sid]

del mar said:

Talking to young lady in the office - 24.

Like most young people she is supportive of freedom of movement / immigration.

50% of Londoners weren’t born in The UK.

Who would have thought that might have put pressure on housing stock.

It is amazing people don't consider the consequences of policies.

[JB!]

markcoznottz said:

Toaster said:

JB! said:

Housing is an issue if you're within commuting distance of London. Ask me how I know, and how many of my 30+ mates OWN... the answer is pretty damning.

As was it for me and my Wife, I left school with no qualifications, when we met and decided to get a home as previously posted by a millennial the "Lifestyle bit" was the pipe dream, grafted hard managed to change jobs with small increments in pay, worked Most weekends for a number of years (10), My wife also progressed in her job we were focussed to do better and get enough money to pay for our home. Interest rates were High (repaying more than double the capital over the 25 years). No handouts from the Bank of Mum and Dad etc etc

It wasn't easy for the average person then and its not easy for the average person now, What I do see is lots of millennial eating out, flash cars phones sky contracts etc etc etc. Its hard buying a house, our first winter we did not have heating.........the bank would not loan us the cash to put it in to the house, not that we couldn't repay it but because they wanted to see us start repaying the mortgage first. Today the Bank would have just given us the Money,

Stop spending money on meals out, Beers, Foreign Holidays, nail bars, beard trimming male grooming products trash the expensive computers and iPhones, subscriptions use the free wifi in libraries, walk, cycle and get a old car if you need one.

In the 1980's the only time anyone of normal means went in a restaurant was on a special occasion i.e. A birthday.

Meals out? Maybe once a month a cheap curry/Italian with the lads, no massive nights out anymore, no mental holidays, no £1k i-devices, beat up cars, no sky... and STILL it's hard to cover a 200k terrace house deposit while paying £850 a month rent...

I own, but then I earn more than most of my friends, bar a couple who contract.

Oh and some professional employers specifically block additional formal employment, and if you can't get cash work, how do you swing that one?

[anonymous-user]

JB! said:

markcoznottz said:

Toaster said:

JB! said:

Housing is an issue if you're within commuting distance of London. Ask me how I know, and how many of my 30+ mates OWN... the answer is pretty damning.

As was it for me and my Wife, I left school with no qualifications, when we met and decided to get a home as previously posted by a millennial the "Lifestyle bit" was the pipe dream, grafted hard managed to change jobs with small increments in pay, worked Most weekends for a number of years (10), My wife also progressed in her job we were focussed to do better and get enough money to pay for our home. Interest rates were High (repaying more than double the capital over the 25 years). No handouts from the Bank of Mum and Dad etc etc

It wasn't easy for the average person then and its not easy for the average person now, What I do see is lots of millennial eating out, flash cars phones sky contracts etc etc etc. Its hard buying a house, our first winter we did not have heating.........the bank would not loan us the cash to put it in to the house, not that we couldn't repay it but because they wanted to see us start repaying the mortgage first. Today the Bank would have just given us the Money,

Stop spending money on meals out, Beers, Foreign Holidays, nail bars, beard trimming male grooming products trash the expensive computers and iPhones, subscriptions use the free wifi in libraries, walk, cycle and get a old car if you need one.

In the 1980's the only time anyone of normal means went in a restaurant was on a special occasion i.e. A birthday.

Meals out? Maybe once a month a cheap curry/Italian with the lads, no massive nights out anymore, no mental holidays, no £1k i-devices, beat up cars, no sky... and STILL it's hard to cover a 200k terrace house deposit while paying £850 a month rent...

I own, but then I earn more than most of my friends, bar a couple who contract.

Oh and some professional employers specifically block additional formal employment, and if you can't get cash work, how do you swing that one?

Not to turn this into a 4 Yorkshireman script but things have been just as difficult, if not worse, for other generations.

We spent years in the late 70s, early 80s with soaring interest rates on mortgages eating up most of our income. No holidays for 7/8 years; 5 to Fiat 128 (with a kid and a dog!). No new clothes, no eating out. And we didn’t live in a major city.

That’s just how it was for many of us and we didn’t ask for handouts, we got on with it. I see no reason why I should be bailing out others now, especially when plenty are still getting on with it and not doing too badly, thanks.

I do appreciate London and it’s environs are ridiculously expensive to live in but there’s a simple answer to that.

[Timmy40]

Another problem with this policy is that it would be a blanket gift across the country, £10k in the SE wouldn't help much, £10k in the welsh valleys would be half the price of a terraced house.

[crankedup]

markcoznottz said:

It's obvious what's coming. Call it by its name. It's a bail in. If QE, inflation, zirp, & GDP led immigration dont work, the last chance saloon is to basically rob people of thier hard earned. Nice work if you can get it.

Neat summary not far away from real World at all. Government will have to soak the wealthy individual in tandem with those tax avoiding Corporates, otherwise the middle classes will explode.

[Rovinghawk]

crankedup said:

Government will have to soak the wealthy individual in tandem with those tax avoiding Corporates, otherwise the middle classes will explode.

Or they can just forget the whole stupid idea.

[RemyMartin81D]

Moonhawk said:

Is it really that difficult?

By the time I left uni - I had £3k saved off the back of a work placement year and a part time evening/weekend job. This was back in 1995/6.

I know a young couple who blew £20k on a wedding and honeymoon - and who claim 'we can't afford to buy a house'.

I doubt said couple blew 20k on said items, more than likely on tick, credit card etc. All things you cant do with a house deposit. Well you sort of can...,anyway fits most people's mindset that housing is unaffordable by simply letting themselves repeat it ad nauseum to anyone who will listen.

[budgie smuggler]

Toaster said:

Stop spending money on meals out, Beers, Foreign Holidays, nail bars, beard trimming male grooming products trash the expensive computers and iPhones, subscriptions use the free wifi in libraries, walk, cycle and get a old car if you need one.

Sound advice, however the price of houses has also gone up massively compared to earnings. For example in 1997, the time taken for a low to mid earning first time buyer to save up a deposit was 3 years if they put aside 5% of their disposable income. If a low to mid earning first time buyer did exactly the same now, 5% of their disposable income, it would take 20 years! It was actually as high as 26 years in 2010.

Now, you can quibble the 5% number, I know I ate value beans and noodles for 3 years and put away a steload more than that, however the point is the same task has become significantly more difficult in the last 20 years.

[crankedup]

Rovinghawk said:

crankedup said:

Government will have to soak the wealthy individual in tandem with those tax avoiding Corporates, otherwise the middle classes will explode.

Or they can just forget the whole stupid idea.

Yup, best option for sure.

[red_slr]

budgie smuggler said:

Toaster said:

Stop spending money on meals out, Beers, Foreign Holidays, nail bars, beard trimming male grooming products trash the expensive computers and iPhones, subscriptions use the free wifi in libraries, walk, cycle and get a old car if you need one.

Sound advice, however the price of houses has also gone up massively compared to earnings. For example in 1997, the time taken for a low to mid earning first time buyer to save up a deposit was 3 years if they put aside 5% of their disposable income. If a low to mid earning first time buyer did exactly the same now, 5% of their disposable income, it would take 20 years! It was actually as high as 26 years in 2010.

Not where I live.

My first flat (16 yrs ago!) was £120k. They are still selling for this, actually slightly less if you get a deal. Well within reach of FTB, IMHO. There are some similar flats near where I live now, similar floor paln etc £90k.

My first house (12 yr ago!) was £180k, if I was lucky it might sell for £210k ish, more like £200k, again well within reach of a young family who planned and saved etc. But probably not a first time buyer property anyway as its a 4 bed semi.

[chunder27]

Where do you live then?

As that would not be the case in most places within a 50 mile radius of London!

[red_slr]

Both properties inside the M60. So hardly a shortage of jobs or entertainment or quality of life etc etc etc.

[turbobloke]

budgie smuggler said:

Toaster said:

Stop spending money on meals out, Beers, Foreign Holidays, nail bars, beard trimming male grooming products trash the expensive computers and iPhones, subscriptions use the free wifi in libraries, walk, cycle and get a old car if you need one.

Sound advice, however the price of houses has also gone up massively compared to earnings. For example in 1997, the time taken for a low to mid earning first time buyer to save up a deposit was 3 years if they put aside 5% of their disposable income. If a low to mid earning first time buyer did exactly the same now, 5% of their disposable income, it would take 20 years! It was actually as high as 26 years in 2010.

Now, you can quibble the 5% number, I know I ate value beans and noodles for 3 years and put away a steload more than that, however the point is the same task has become significantly more difficult in the last 20 years.

Then again, why put aside a mere 5% if it's not enough for what somebody wants to do?

ONS said:

The median equivalised household disposable income in the UK was £26,300 in the financial year ending 2016.

Can't find anything for 2017 but didn't look for too long.

It's more a London and SE issue surely - iirc there have been posts from PHers outside the M25 regarding their first property bought in the 80s or 90s being valued at not much more today than correcting for inflation.

In any case there's no official piece of paper with a promise that anyone has a right to buy a house in any particular location at any particular multiple of average earnings.

Even if somebody gets a handout somebody else pays for in order to fund a deposit, what's to say they could get and afford a mortgage? This is punted as something for everyone at 25, but far from everyone at 25 is in a position to service a mortgage not just due to house prices.

Also if the 25s used their handout for a mortgage they'd have nothing left to start their business...time for yet another handout!

This latest 'victim of society' nonsense is nonsense.

[WindyMills]

ChemicalChaos said:

TTwiggy said:

It's just a proposal. Fact is, there's a generation (or two) for whom the traditional idea of home ownership is a pipe dream. This isn't great for social cohesion, and, as there's already a tacit contract that sees the 'young' support the 'old' via tax takes, it's worth looking at these issues before a whole bunch of people decide they're really not very happy with the status quo.

Is it really a pipe dream though?

My Facebook feed is full of similar age friends (25-30) buying houses with their partners. The coincidence is that said housebuyers don't go out clubbing most nights, don't go travelling to Thailand for a month at a time, and don't obsessively have the latest car and phone on finance.

Same here, my friends who are clubbing most nights, travelling, live in the SE or have a new audi are not homeowners.

The big/only inter-generational difference is pensions imo. The size of the average contributions into private sector pensions is going to create huge gulfs between the "haves", the "have not but paid for it" and the "didn't pay for st's".

[roachcoach]

2xChevrons said:

2
Millennials have so far been 20-25 per cent less likely to move jobs than members of generation X at the same age, and are missing out on big pay rises as a result.

My bold.

I am curious as to how #2 can be painted as "someone else's responsibility"? I thought it was fairly common knowledge that, in general, the largest pay rises come from company/job moves?

[del mar]

I would love to live in Chelsea;

4 bed house decent garden, garage for 4 cars.

I can’t afford it so can the government give me some money please ?

Or I can live just outside of the m25 and commute in to work.

[Sa Calobra]

55palfers said:

http://www.hl.co.uk/news/2018/5/8/give-millennials...

"Every person in Britain should receive £10,000 when they turn 25 to help fix the “broken” intergenerational contract between millennials and baby boomers, an influential thinktank has proposed following a two-year study."

Looks like they propose funding it by widening the net for Inheritance Tax - that'll go down well

Can't see this coming off, although I suspect they will make workers over pensionable age pay NI.

I was talking to a 23yr old this week. He repays £40 a month towards his student debt.

The monthly interest is £100 a month and increases the more you earn so I guess for 30years you never repay it. After 30yrs it's wiped off but how much interest is that over 30yrs?....I bet it beats the original loan amount

So I say nevermind 10k. Wipe the debt for all those grads who took decent degrees. Those who took media type degrees. Tough.

[Disastrous]

GT03ROB said:

Disastrous said:

But honestly, I still don't see what on earth an immersion suit has to do with working hard/buying a house.

Absolutely nothing, but he did note in parentheses "or something that takes you away from your comfort zone", this a valid point. You want something nice & cozy fine, but there are consequences associated with that. Some of those consequences include you can't have the house you want.

In fairness, his whole point condensed was “my advice is do something that takes you out your comfort zone”. That is actually meaningless without the bit you’ve added.

I would respectfully submit that someone who is short a deposit and looking for advice wouldn’t be especially well served by going and doing a bungee jump or a skydive. Saving money might be better advice...

[poo at Paul's]

Sa Calobra said:

55palfers said:

http://www.hl.co.uk/news/2018/5/8/give-millennials...

"Every person in Britain should receive £10,000 when they turn 25 to help fix the “broken” intergenerational contract between millennials and baby boomers, an influential thinktank has proposed following a two-year study."

Looks like they propose funding it by widening the net for Inheritance Tax - that'll go down well

Can't see this coming off, although I suspect they will make workers over pensionable age pay NI.

I was talking to a 23yr old this week. He repays £40 a month towards his student debt.

The monthly interest is £100 a month and increases the more you earn so I guess for 30years you never repay it. After 30yrs it's wiped off but how much interest is that over 30yrs?....I bet it beats the original loan amount

So I say nevermind 10k. Wipe the debt for all those grads who took decent degrees. Those who took media type degrees. Tough.

What I dont get about Student debt nowadays is how flipping much it all seems to be? Some are leaving uni with 50k of debt? How can it be so much? When I went to uni, the tuition fees were minimal, (not all was free, some modules and courses neededing paying for), but I had no debt from anywhere else. In the holidays i worked and worked hard, to save the cash to pay for my accomodation and food etc for the next term or so. I couldn't afford to eat out at all, and didn't even have the time or cash to go out boozing tbh much either, (although the Student union prices made is a bit more affordable). But I had no phone contract, no car at uni, didn't go "travelling" in the holidays and had no "gap year" either, as I could not afford to. And I was not alone, many of my peers leived the same way.
So how much of the debt that Student leave uni with is tuition fee debt? As for the rest, how many Students work through their uni careers and budget? I guess some see the ease of getting a big loan as a way to not have to budget too much and live life up a bit at Uni?

[Timmy40]

poo at Paul's said:

What I dont get about Student debt nowadays is how flipping much it all seems to be? Some are leaving uni with 50k of debt? How can it be so much?

The cock up seems to have been removing the raise the cap on fees to £9k. Instead of creating a market all Uni's simply raised there fees to the limit. As one person asked on a program I heard how can it cost 3 times as much to educate a student as it does to full time school a secondary school child?