How to buy a house: The Millennial’s Guide

Hey you, under 30? Want to own your own home? Not a trust fund baby? Then read on to find how you can join our great property owning democracy.

Channel your inner Chairman Mao

As the great philosopher Dizzie Rascal said ‘if you don’t have a dream, how you gonna have a dream come true’. But if you don’t have a plan, then all you have is wishful thinking. So lay out a five year plan to save for your deposit. Now I know in an era of Packman video games, BookFace and WhatsUp us millennials are all about that instant gratification #LifeGoals but stick with me on this one. It’s worth it.

Chairman Mao was great at 5 year plans, utter shit at being a good, democratic leader. But at plans, he got his game on tight. So it would be worth following his lead, and if you work hard, keep an eye on your costs and can stack away £250 a month over 5 years you’ll have saved £15,000. Which is great because it means you’ll only be £18,000 short of the average deposit needed for a first time buyer. So whilst you won’t be anywhere near the required target for buying a house. You’ll have managed to see 5 years of your life drag by in the desperate hope of not living under the roof of a landlord who is a complete dick. Or with complete strangers who aren’t complete dicks. Or living with your parents who probably think you’re a complete dick.

Oh yea, that £33,000 figure is the UK average, so if you’re in London it’s nearer the £100,000 mark #SozBoss. The good news is that Chairman Mao had more than one 5 year plan, so you just continue to follow his lead and start another one, or two.

Find a rich old person, hope they die

I’m not going to lie, this one works best if you’re a financial beneficiary of a rich old person. So whilst strictly speaking you can do this with any rich old person, it would be better to be related to the aforementioned cashcow er I mean much loved elderly member of society. Considering we are a generation that may well be worse off than our predecessors, getting a leg up from your dead Nan is probably a good way of avoiding a tricky time to be alive and affording to buy a house. Particularly given that, of the estimated £7 trillion increase in net wealth in the UK since 1995, £5 trillion is related to the increase in the value of dwellings in this fair isle. So whilst 50 Cent had a plan to get rich or die trying. It’s probably best to focus on getting rich by someone else dying.

Read the Runes

Not getting paid enough to keep up with the rising cost of living? You’re a millennial, so you’re probably not, and living in the private rent sector, which is what most of us do, isn’t going to help. Well, there’s a number of ingenious ways you can help keep those pesky bills down. Helpful* souls like Edwina Currie, Strutt and Parker (although their numbers are a tad out there) and Tim Gurner have given really helpful advice on how to make your money go further. Which considering households today can spend like 36% of their income on housing costs is totes helpful.

Well there you have it, a quick and easy guide to getting a home. Good luck on your journey to joining the massive debt mountain that is keeping our crushingly unproductive economy going.

As ever, you can find more of my stuff here and follow me on Twitter here.

Photo Credit – KJØKKENUTSTYR (2016) Avocado Toast

*Arsewipes

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Moses I amn’t

I agree Gavin Barwell, relying on a rich, dead, relative should not be the way to buy a home. The housing market should be able to facilitate affordable home ownership without someone being 6 Feet under or living in a hamster cage. So let’s build more social housing.

It is seldom that I write directly about home ownership, this blog is typically a mish-mash of things related to social housing, internal processes thereof or me being annoyed at Central Government that negatively affects social housing. But, as is now, I occasionally will stray. In this particularly instance it is some recent comments from our new Housing Minister that have piqued my interest.

Fetch the shovel

The first comment of note is Mr Barwell’s quite honest (and accurate) response to a question around home ownership and how first time buyers can get on that mythical housing ladder. By stating that Grandparents should by-pass their children for the sake of their Grandchildren’s ability to buy a home he has presented a quite reasonable approach tackling diminishing home ownership. This is fairly appropriate and reasonable, the issue is two-fold.

1) The most obvious – It’s bollocks. I, as a qualified, reasonably well paid, worker should not have to rely on a rich relative dropping dead to buy a bloody house. The fact that people are having to do so in order to afford the deposit for a mortgage is a sure-fire sign that years of crap housing policy (from all political parties) is coming home to roost. I agree with Mr Barwell that this shouldn’t be the case.  The problem is his party have been making the situation a lot worse for the past 6 years. Going, yeah it’s a bit shit, right now isn’t helpful. Though it is a start.

2) Housing supply is the key concern in terms of driving up the cost of housing, not necessarily the ability to buy (in many instances credit has never been cheaper to access). Social mobility will stagnate until housing supply increases because it is this (and not scrapping right to buy in social housing) that is causing stock blocking and wealth inequality to sky-rocket. Renewed Government interest in funding housing projects might help, but much more is needed. Especially in terms of more social housing. Which pays for itself and even works post Brexit. Just saying.

I am not a Hamster

Sadly Mr Barwell’s other interjection has actually annoyed me (the other is a bit of a misquote). Call me picky, but I don’t want to live in a house that doesn’t meet current building regulations, because they’re actually pretty shit. Britain already has the smallest sized houses in Europe (the continent, not the EU, shut up Brexiters). Making them smaller isn’t going to help. Whilst it’s happened to a number of day-to-day products like Cadbury Chocolate bars. Yes you cheeky sods, I’ve noticed they’re smaller, and you’ve put your prices up. Bastards. Doing the same for properties just builds up issues down the line.

Whilst some might think that my age cohort splash out cash on overly pricey crap and skiing holidays, we’re mostly just getting by. You’ve had your cake, and eaten it, kindly don’t lecture me. I don’t want to live in a tiny house. I don’t want to live in a converted shipping container. What I want is for my reasonable pay to be able to afford a reasonably sized house, preferably within a 1 hour commute from my job. That is not an outlandish wish, but as prices (both rental and ownership) continue to outstrip wage growth, it might as well be.

Wrapping it up

I am willing to give Mr Barwell some leeway. His predecessors have said/done much dumber things. As Housing Minister Grant Shapps championed a policy that increased social rents (i.e. Affordable Rents) to those likely to receive housing benefit (i.e. those living in housing provided by Social Landlords) whilst the Government he worked for was trying to reduce that very same bill. Barwell’s statement on inheritance is quite sensible, but for many it is simply not an option. And at least with his idea for smaller homes he’s trying to think outside the box. But with a Government that is at least wanting to sound like it will make Britain work for all (as long as you’re British…) something other than ‘hope you have rich relatives’ is needed.

You can find more of my stuff here and follow me on Twitter here.

*Updated to emphasise misquote of Barwell in the Independent.

Let’s face the music and dance

Homes for Britain Rally an important step in PR battle but a pro-housing stance amongst the general public is more nuanced than a simple nod to more social housing.

So the day is about to/has arrived (depending on when you read this) when all and sundry in housing pop down to London town in order to support the call for more housing in Britain.  I must admit I have had my doubts about the campaign.  Whilst the pressure group SHOUT has been very explicit in its calls for more social housing, Homes for Britain has tread a more fleet-footed approach.   No direct mention of social housing, just the line that we have a housing crisis.  I would like to see a more out and out support for social housing than has been the case.  I get the need for an approach that appeals to more than just the housing sector.  But on occasion it feels a little false.  That being said (for the record mostly) I support both Homes for Britain and SHOUT (I’m an inclusive kinda gal).

Despite my ever present doom and gloom recent weeks have been encouraging.  Housing has got into the mainstream press with the NHF in particular getting a large amount of air time.  Ramming the message home that not enough homes are being built.  That all the political parties have a golden opportunity to address a chronic problem.  That inaction is not an option.  And the public appears to be listening.  Shelter even won a highly important victory today over revenge evictions.  No Chope or Davies to filibuster the legislation this time.  Democracy works after all.  Positives aside, the ever reliable guys and gals over at Ipsos Mori have been producing some interesting survey results on housing for a while, not all of them good news.

A remarkable 75% of those surveyed believed there is a housing crisis, but only 5% indicated it would change the way they would vote.  It is also a bit removed, with only 40% saying there was a housing crisis in their local area.  This is a little troublesome.  Unless you can resonate the issue with people positive sentiment will not translate into action. Stuff that appears to sod off other people doesn’t quite cut it.  The Housing Day Survey did indicate a largely positive support for more social housing, but home ownership was still the preferred choice.  And housing is still down the pecking order in more recent pulse checks of the voting pulic perhaps a bit more passion might help our cause?

If you ever needed a bit of a pick me up I suggest you take a look at either this video from Michael Sheen or this one from Harry Smith.  Both provide what our side of the debate often lacks, visible passion, pride.  And a warning not to walk quietly into the night. Raw, un-distilled and in your face.  At a time when more and more it is only sanitized opinions (or needlessly controversial, looking at you Katie Hopkins) that are in the public space, showing some chanelled emotion may prove worthwhile.  As Mr Sheen himself states on the general apathy in British politics “by God believe in something“.  Tomorrow is our opportunity to show we do just that, I hope we grab it.

If you are at the rally I will be in and around and mostly on my best behaviour.  See you there, feel free to pop up and chat.  If you are inclined you can follow me on Twitter here or find me using the Twitter handle @ngoodrich87, you can view the rest of my blogs here.