State of the Market

[northernladuk]

So on a low income you could still afford a home? So you arrogantly think it's the same now and kids are just lazy snowflakes?

Don't know about lazy but there is a discussion to be had about entitlement. Also factor in the 'basic' needs they have including a high end leased car, expensive tech, fashion and global holidays that weren't a thing back in those days.

Granted that's a sweeping statement of an entire generation and many don't do the above but it's certainly more prevalent now than it ever was.

Are all kids now lazy snowflakes? Probably not but the lifestyle of the new generation is certainly a factor when talking about this type of stuff.

[Snooky]

Also factor in the 'basic' needs they have including a high end leased car, expensive tech, fashion and global holidays that weren't a thing back in those days.

Granted that's a sweeping statement of an entire generation.

You're right.

That is quite a sweeping statement and rather an insulting generalisation.

My daughters are all in fairly well paid professional jobs. They don't splash out on luxuries like you describe and they saved up what they could for deposits, but it was only with our help that they managed to get a toe on the housing ladder and even then the mortgage payments, when added to significantly higher costs of living, are quite painful. Those of their friends whose situations I'm familiar with are in the same boat.

In all respects, other than the cost of housing relative to their income, they're already in exactly the same position as many of us were in the days of high interest rates and no flamboyant spending.

[Alf W]

Let’s not forget that in the 90s affordability was largely based on multiples of income. These days Gen Z are probably the first generation who will benefit from significant hereditary property wealth coming down from their grandparents so maybe they are only going to have to borrow 3x income whilst the rest comes from ‘family money’.

[JustKeepSwimming]

Don't know about lazy but there is a discussion to be had about entitlement. Also factor in the 'basic' needs they have including a high end leased car, expensive tech, fashion and global holidays that weren't a thing back in those days.

Granted that's a sweeping statement of an entire generation and many don't do the above but it's certainly more prevalent now than it ever was.

Are all kids now lazy snowflakes? Probably not but the lifestyle of the new generation is certainly a factor when talking about this type of stuff.

That's a complete cop out. Housing costs as a percentage of income was around 20% in 1990s. Now they are now 35%.

No amount of avocado and toast changes that. Technology moves on, just because a mobile was magic when you were a kid doesn't mean it's not a necessity today.

[Alf W]

Regarding the ‘leased cars’ things. I’ve certainly noticed a number of ‘early careers’ people who, as a result of COVID, gave up expensive flat rentals, moved back in with Mum and Dad. No commuting expenses. Couldn’t go on holiday. Suddenly had a huge increase in disposable income. 25 year olds swanning around in 3 year old Mercs and BMWs on lease deals. Now being asked to return to office facing 100 mile plus commutes each way and impending balloon payments. It will be interesting to see how this goes.

[JustKeepSwimming]

Regarding the ‘leased cars’ things. I’ve certainly noticed a number of ‘early careers’ people who, as a result of COVID, gave up expensive flat rentals, moved back in with Mum and Dad. No commuting expenses. Couldn’t go on holiday. Suddenly had a huge increase in disposable income. 25 year olds swanning around in 3 year old Mercs and BMWs on lease deals. Now being asked to return to office facing 100 mile plus commutes each way and impending balloon payments. It will be interesting to see how this goes.

I expected a PPI style scandal of PCP many years ago, it never materialised, I don't think it will as I suspect lenders are pretty on the mark with regards to compensation. Ie they know when they have missold and are making appropriate remedies when a complaint comes in.

[BigLadFromBeeston666]

Don't know about lazy but there is a discussion to be had about entitlement. Also factor in the 'basic' needs they have including a high end leased car, expensive tech, fashion and global holidays that weren't a thing back in those days.

Granted that's a sweeping statement of an entire generation and many don't do the above but it's certainly more prevalent now than it ever was.

Are all kids now lazy snowflakes? Probably not but the lifestyle of the new generation is certainly a factor when talking about this type of stuff.

OK Boomer.

[BlasterBates]

So on a low income you could still afford a home? So you arrogantly think it's the same now and kids are just lazy snowflakes?

In the early 90s price to income was x3. Now its x8.

It was never x3. It was always x4 and above. In the early 1990s there was a deep recession. In the late 1980s during a boom it was over x6. Currently the ratio is x6.7 and will drop back to x4 if there is a recession is as severe as in the 1990s or early 1980s.

[SueEllen]

Regarding the ‘leased cars’ things. I’ve certainly noticed a number of ‘early careers’ people who, as a result of COVID, gave up expensive flat rentals, moved back in with Mum and Dad. No commuting expenses. Couldn’t go on holiday. Suddenly had a huge increase in disposable income. 25 year olds swanning around in 3 year old Mercs and BMWs on lease deals. Now being asked to return to office facing 100 mile plus commutes each way and impending balloon payments. It will be interesting to see how this goes.

With the lease deals they likely got they could hand back the cars.

Thought to be fair the younger people I know paid for their cars in full if they have cars. Most don't.

[SueEllen]

It was never x3. It was always x4 and above. In the early 1990s there was a deep recession. In the late 1980s during a boom it was over x6. Currently the ratio is x6.7 and will drop back to x4 if there is a recession is as severe as in the 1990s or early 1980s.

Not with the people a few years older than me in the 90s it wasn't. They definitely had 3X their salaries.