View the article online at http://citywire.co.uk/money/article/a408116
Why I don’t care about house prices
House prices are up again - but how does this really affect me?
This week the Department for Communities and Local Government revealed that house price inflation in the UK has climbed to over 10%.
This means the average house price is now £207,516, just 0.4% higher than in March.
But what does this really mean for me?
I am not even close to getting the tip of my big toe on the property ladder. In fact, unless I win the lottery (which is unlikely as I don’t play), it is inconceivable that I will be able to afford a house worth a couple of hundred grand for a good few years – if not decades.
As a result, news about house prices doesn’t ever feel very ‘real’ to me, and to be quite honest it quite often goes in one ear and out the other.
This isn’t to say I don’t care, I just often feel that fluctuating house prices and the availability of mortgages doesn’t directly affect my life – for now.
To me, the property market is something for other, wealthier people to worry about. It doesn’t really matter if house prices flit up and down by 10, 20 or 50 grand this week or next, because I wouldn’t be able to afford one anyway. I’m so far off owning my own house that there is just no point thinking about it.
Paying off my overdraft, clearing my credit card debt and squirreling away some savings are the sort of things I’m concerned with on a daily basis.
This is not to say I don’t want to own a house in the future. Ever since I was young I have had it drilled into me that when you grow up you buy a house.
‘By renting a house you are make someone else rich, but by owning a house you make yourself rich,’ to quote my granddad.
But the days of owning a house in your twenties seem long gone.
According to the National Housing Planning and Advice Unit, only a quarter of people aged 25 – 34 who want to buy in the next three years think they will be able to afford it.
The fact is young, first time buyers are completely locked out of the property market. And I just don’t see how we are going to change that.
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