1974 versus 2024: Wie schwer ist es für Paare jetzt, ein Haus zu kaufen?
https://www.thisismoney.co.uk/money/mortgageshome/article-14114017/What-like-buying-home-1974-vs-2024-harder-ladder-now.html?ico=mol_desktop_home-newtab&molReferrerUrl=https%3A%2F%2Fwww.dailymail.co.uk%2Fhome%2Findex.html&_gl=1*1rusuvw*_ga*MTU0MDA1NDE4MC4xNzMyNDYxNzc3*_ga_C9F47K6NW6*MTczMjUxNzQ1Ni41LjEuMTczMjUyMDUwOS41Ny4wLjExNzQyNTU1NzQ.
Von amaidhlouis
22 Comments
It’s cool though, at least we have avocados and tikka masala now
Has the article completely ignored inflation? It’s not a 2.5k% increase in real terms. That would be impossible.
Lower interest rates = higher asset price and larger deposit.
Higher interest rates = lower asset price but larger mortgage costs.
Building has not kept up with the growing population, wages have not kept up with inflation, and there is less social housing.
One humungous difference is that in 1974, most couples would be buying a house on only the man’s salary because the woman either had already or would soon stop working and become a housewife and mother.
Before downvoting, think about what this means. It means that in 2024 there is twice as much money chasing the same number of houses, which is a big reason why the price has gone up (and why most single people have little to no chance of outbidding couples).
Don’t even need to go that far back. My inlaws bought a moderate family home in Surrey in the 90s. She worked part time in a shop, he worked for the local utility company.
We had to leave same town as couldn’t move past a shitty rented flat despite earning decent wages.
Moved north, had a moderate family home within two years.
In the 1970s the highest interest rate was 17% and the lowest interest rate was 5%.
But remember kids. Just don’t buy any coffee outside. Or food outside. Or ever leave the house. Then you’ll be able to afford that down payment in about 11 years time.
Hilarious that this is coming from the Daily Mail of all people, who’s readers only care about their property prices increasing and making sure the youth of today are worse off than them
But didn’t you hear boomers had 15% rates for a few months??? Will no one think of the poor boomers?
Article was obviously written by a millennial at the Daily Mail and managed to get it past the boomers.
I highly recommend Tom Nicholas’s in-depth piece on how we almost solved the housing crisis before.
https://youtu.be/jZpLiJdIGbs?si=MIcxZllvwLPxrxxl
Video Long : Didn’t Watch – We built council houses which the private sector had to match in quality or fall behind (yes council houses used to be good compared to private) and did so for decades until a certain 70’s PM came in and scuppered the lot, selling them off at a loss which cost local councils millions, while promising the private sector would take over the amount of houses being built which it never did.
Getting the ball rolling on house building would also help unemployment figures and wealth distribution, it’s an investment in Britains workers, not an attack on investors.
Edited: spelling and fixing autocorrected words.
I may get down-voted for this, But when I got a mortgage in the 90’s I could only borrow 3.5 times my wages. I feel once they’d relaxed this rule, it is where it all went wrong.
The deposit amount against 2024 is wrong, it says £5800, but I’m guessing it’s meant to read £58,000 judging by the other “calculations”.
Can’t say I’d give this much credit. There are so many other options out there that don’t involve putting a 22% deposit down. Are people really saving up £50k+ for a deposit?
I put a deposit down of less than £8k is 2018, for a £135k house. Are we now saying for the same price house a deposit would need to be nearly £30k at 22%? I call bollocks.
I have a family friend in his 60s and his story of how he came to buy his first house is crazy compared to nowadays.
He was actually asked by the bank manager to go in for a chat and he was offered a mortgage there and then. Basically “if you find a house you want up to £x value then we’ll give you a mortgage”.
When he’d found the house and they were sorting out the mortgage, the bank manager realised he didn’t have any money for furniture, so added some on top.
So a guy with no savings got offered a 105% mortgage with no effort whatsoever.
Then not so long after that he got a second house as a buy to let, with no more effort than the first mortgage. Bearing in mind he was just working normal jobs and wasn’t taking home a high income.
That generation had it on easy street and now they’re going mad about losing £6 per week heating allowance.
Regardless of what you are trying to tell us, that article is riddle with so many maths errors, it’s impossible to believe, and will be picked apart by both sides of the argument.
For example:
2024 deposit – £58,00
However, according to Mojo’s analysis, today’s salaries are **£13,676 short of keeping pace** with house prices.
Put another way, if average house prices had risen only in line with salaries they would be £76,000 or **29 per cent cheaper** than they are.
Shit article written by awful AI & not proofread by a cognisant human.
This is what the future looks like for news.
*Edit:*
*The* infographic *doesn’t even agree with the article text – is it 3 months or 6 months to save the deposit in 1974?*
Back in the 70’s if you wanted to buy a property you needed to go to your bank and be interviewed by the bank manager to assess as to whether you were suitable! Suitability criteria was dependant on your ‘status’ ie were you middle class or white collar profession, if not tough, no mortgage, no property ownership. It wasn’t until Maggie Thatcher in the 1980’s loosened the financial markets by allowing other lenders to enter the loans business that the majority of people could get credit. I’m sure some people could get mortgages if they didn’t fit the requirements but it certainly wasn’t as easy until the financial big bang in the 1980’s.
My aunt and uncle bought their three bedroom flat in Islington back in 1972 off their landlord. He was a builder, she was a cleaner, they bought their property for only 10 grand. Only £153,000 in today’s money. It’s unimaginable nowadays.
I think the 3 months to save a deposite in 1974 is a bit out when the average weekly wage was £48, but lots of people were on less than 50p an hour at that time.
If you paid in gold the house prices are roughly the same. Just shows you how shafted workers are getting and how deadly inflation is.
3 months to save for a deposit! That’s always the key one for me, no is saying the 70s were easy for anyone but housing is the bedrock of people’s lives and to think then that a bit of work made it possible to plan like that, it changes everything.
Without even looking into the stats, I know my parents got a mortgage on a three bedroom detached house with a good sized garden in 1974, whilst in their early twenties and in fairly averagely-paid jobs in the public sector (they were both teachers).
And I know that would not happen now.
Scotland, Wales and Northern Ireland are full of affordable housing.
And millions work from home.
We’ll spend our days indulging talk of Scottish independence but then laughing at the idea of living there.
We don’t have a right to live next to London – and millions that do have no need to either.
It’s not about building houses – it’s about getting people to understand the country doesn’t stop at the M25. Especially when you work from home.