Our children used to have to wait until we died to get their hands on our assets, if any. Now it seems they can’t wait. They beadily eye our ridiculously overvalued homes and it is only with great restraint or great affection that they stop themselves telling us to sell immediately and hand over some capital. Surely you would be happier in something smaller, they suggest. Get out, grandma, is the message and often well before we are a grandmother.
It’s not that they are greedy. It’s that they are beginning to be desperate. Property prices have risen to such dizzying heights that most cannot hope to buy a first home without help.
The average home in England costs seven times the buyer’s earnings; as recently as 1998 it was about five times earnings, but by 2026 it will be 10 times, even if the government succeeds in its plans to promote more house building. Most young people will be unable to afford to buy their own homes at all.
This was the warning last week – if we needed a warning – of the National Housing and Planning Advice Unit, a new government think tank. At the same time the Council of Mortgage Lenders reported that nearly half of first-time buyers under 30 were getting help from their families.
Source: www.timesonline.co.uk
Thursday, January 24, 2008
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