3 generation households increasing
Discussion
The dramatic rise in house prices combined with such factors as rising council tax means that more and more households have 3 generations living under the same roof.
800,000 homes are now 3G (3 generations under one roof) and make up 8% of households in the North and 7% in London.
Telegraph article
Why the family home is starting to fill up again
By Tim Hall
(Filed: 14/11/2005)
Households with three generations living under one roof are increasing as an economic squeeze is felt at both ends of the age spectrum.
Many would-be home owners in their twenties, denied their ambition by rising house prices, are spending more years with their parents.
And more and more of those over 65 are going to live with their children because rising health, heating and council tax costs make it harder for them to keep their homes.
A study shows that more than 800,000 homes are, to use the researchers' words, 3G - that is, three generations living under one roof.
Experts say the trend has been driven partly by people living longer. Many find that their pensions and savings are not adequate and that they are obliged to move in with their children.
Others, in their twenties and even thirties, have been put off leaving the parental home by house prices that have almost doubled since the beginning of 2000.
Stuck in between are the middle-aged with a full household.
Researchers asked people around the country aged 35 to 64 who own their homes if they now had both their parents and their children living with them. The result was an estimate that as many as 858,000 households comprise three generations.
Experts say it is a trend back towards pre-war Britain when many working-class families had to live together because of financial hardship. Since the war the tendency has been for self-sufficient family members to go their separate ways. But although people are wealthier than ever, different economic pressures have emerged, the researchers say.
"Retired people struggle by on average incomes of around £11,000 and many are still paying off mortgages," said Mark Neal, of Economic Lifestyle researchers.
"Around one in five pensioners lives below the poverty line. Financially it makes sense for them to go back to live with their children, who may be reasonably well off and able to help them."
Mr Neal said that, faced with average house prices of more than £165,000, many of the younger generation were also finding that it made sense to remain in the family home.
He added: "Three generations of a family living under the same roof can lead to tensions.
"Many families will be happy to have a houseful but for others it is an arrangement forced on them by financial necessity."
Three-generation households are most common in the North and London, where they account for around eight and seven per cent respectively.
In the West Midlands and the South-West the figures drop to two and three per cent respectively.
800,000 homes are now 3G (3 generations under one roof) and make up 8% of households in the North and 7% in London.
Telegraph article
Why the family home is starting to fill up again
By Tim Hall
(Filed: 14/11/2005)
Households with three generations living under one roof are increasing as an economic squeeze is felt at both ends of the age spectrum.
Many would-be home owners in their twenties, denied their ambition by rising house prices, are spending more years with their parents.
And more and more of those over 65 are going to live with their children because rising health, heating and council tax costs make it harder for them to keep their homes.
A study shows that more than 800,000 homes are, to use the researchers' words, 3G - that is, three generations living under one roof.
Experts say the trend has been driven partly by people living longer. Many find that their pensions and savings are not adequate and that they are obliged to move in with their children.
Others, in their twenties and even thirties, have been put off leaving the parental home by house prices that have almost doubled since the beginning of 2000.
Stuck in between are the middle-aged with a full household.
Researchers asked people around the country aged 35 to 64 who own their homes if they now had both their parents and their children living with them. The result was an estimate that as many as 858,000 households comprise three generations.
Experts say it is a trend back towards pre-war Britain when many working-class families had to live together because of financial hardship. Since the war the tendency has been for self-sufficient family members to go their separate ways. But although people are wealthier than ever, different economic pressures have emerged, the researchers say.
"Retired people struggle by on average incomes of around £11,000 and many are still paying off mortgages," said Mark Neal, of Economic Lifestyle researchers.
"Around one in five pensioners lives below the poverty line. Financially it makes sense for them to go back to live with their children, who may be reasonably well off and able to help them."
Mr Neal said that, faced with average house prices of more than £165,000, many of the younger generation were also finding that it made sense to remain in the family home.
He added: "Three generations of a family living under the same roof can lead to tensions.
"Many families will be happy to have a houseful but for others it is an arrangement forced on them by financial necessity."
Three-generation households are most common in the North and London, where they account for around eight and seven per cent respectively.
In the West Midlands and the South-West the figures drop to two and three per cent respectively.
I would hazard a guess that:
[quote]
Many would-be home owners in their twenties, denied their ambition by rising house prices, are spending more years with their parents.
[/quote]
and
[quote]
Others, in their twenties and even thirties, have been put off leaving the parental home by house prices that have almost doubled since the beginning of 2000.
[/quote]
has little to do with house price inflation, rather they are not willing to sacrifice their lifestyle to become a home owner.
There is an expectation (and I am as guilty of this as anyone else) that people have the right to material items & nice homes in areas they want to live.
[quote]
Many would-be home owners in their twenties, denied their ambition by rising house prices, are spending more years with their parents.
[/quote]
and
[quote]
Others, in their twenties and even thirties, have been put off leaving the parental home by house prices that have almost doubled since the beginning of 2000.
[/quote]
has little to do with house price inflation, rather they are not willing to sacrifice their lifestyle to become a home owner.
There is an expectation (and I am as guilty of this as anyone else) that people have the right to material items & nice homes in areas they want to live.
I tend to agree with bga's statement. Many of the people I know who still lived with their parents did so because they wanted to spend all their salaries on cars, socialising and consumer electronics. Plus they got the added bonus of getting their washing done and their meals cooked for around £150 per month.
Then they complain that they can't afford to get on the housing ladder.
Get real sunshine.
Then they complain that they can't afford to get on the housing ladder.
Get real sunshine.
silversun said:
Then they complain that they can't afford to get on the housing ladder.
Get real sunshine.
We've been renting for three years because we can't afford to get on the housing ladder.
I suppose it depends on where you live, round here a terraced house in a half decent area will be nearly 200K at least.
[quote=JagloverWe've been renting for three years because we can't afford to get on the housing ladder.
I suppose it depends on where you live, round here a terraced house in a half decent area will be nearly 200K at least.[/quote]
Know where you're coming from. I rented for 12 years before I was in a position to buy my own flat. But how many times have you heard someone living at home complain that they can't afford to buy their own place before getting into a new car?
I suppose it depends on where you live, round here a terraced house in a half decent area will be nearly 200K at least.[/quote]
Know where you're coming from. I rented for 12 years before I was in a position to buy my own flat. But how many times have you heard someone living at home complain that they can't afford to buy their own place before getting into a new car?
scorp said:
Then they complain that they can't afford to get on the housing ladder.
I don't know why people complain about this as if there is some kind of oppressive conspiracy going on, what's so hard to understand about supply and demand?
It isn't just about supply and demand in the housing sector. The pricing is controlled largely by how much the banks are prepared to lend - this artificailly fuels the house price inflation.
If the lenders were more responsible, then the value of the housing market would be signifcantly less than it currently is. The strnge thing is that this happened before in the early 90's, and the lenders panicked and started making families homeless in their rush to grab back as much cash as they could.
Jaglover said:
Sometimes it is not just about lifestyle, mortgage companies place a limit on how much of a multiple of your salary you can borrow.
Many mortgage firms will lend large multiples, in my research (re-mortgage time next month) it seems that if you meet the repayments, some lenders will give you a loan to suit.
Jaglover said:
Sometimes it is not just about lifestyle, mortgage companies place a limit on how much of a multiple of your salary you can borrow.
This is the problem my girlfriend and I are having.
We have been together 6 years and would like a place of our own but simply cannot afford the prices. I rekon we need around 25k extra just to get on the bottom rung but that involes wither waiting 3-4 years until new jobs yield more money (by which time the housing market will probably have risen more) or saving the money which Im doing. This will take around 5 years.
One possiblity is to move abroad.
Jaglover said:
Then they complain that they can't afford to get on the housing ladder.
Get real sunshine.
We've been renting for three years because we can't afford to get on the housing ladder.
I suppose it depends on where you live, round here a terraced house in a half decent area will be nearly 200K at least.
Agreed, same here mate
silversun said:
[quote=JagloverWe've been renting for three years because we can't afford to get on the housing ladder.
I suppose it depends on where you live, round here a terraced house in a half decent area will be nearly 200K at least.
Know where you're coming from. I rented for 12 years before I was in a position to buy my own flat. But how many times have you heard someone living at home complain that they can't afford to buy their own place before getting into a new car?[/quote]
Ok, but thats not really addressing the issue of the banks wownt lend the amount of money required. Its not the monthly payments its getting on the ladder to start with. And I dont have a new car and live in crappy rented accomodation to save money.
If you think about it, 3 generations in a house is not hard. A woman I work with (aged early 40s) has a 16 year-old daughter living at home who's just popped a sprog. The 16 year-old can either live at home, with her mummy and daddy in their nice 4 bedroomed house, or can get a council flat in scumsville. It's a no-brainer really.
scorp said:
Then they complain that they can't afford to get on the housing ladder.
I don't know why people complain about this as if there is some kind of oppressive conspiracy going on, what's so hard to understand about supply and demand?
Because the market has asymetrical regulation.
Planning laws rigidly restrict supply, whilst at the same time restrictions on the amount that can be borrowed have been removed.
It's not hard to believe that this is part of a deliberate wealth redistribution strategy to transfer money from younger generations towards baby-bommer retirees as one way of solving the looming pension crisis.
polus said:
Ok, but thats not really addressing the issue of the banks wownt lend the amount of money required. Its not the monthly payments its getting on the ladder to start with. And I dont have a new car and live in crappy rented accomodation to save money.
I knew this was going to come back and bite me.
[disclaimer] OK, SOME people seem to want the moon on a stick, not everyone.[/disclaimer] Yes, but if the banks won't lend the money then surely it's an indication that they are concerned that the lendee won't be able to pay back the loan? I'd like to buy a house for £500K, but both the bank and I know that even if they did lend me the money I wouldn't be abe to meet the repayments every month on my current salary. Plus it makes sense that people are required to have a decent deposit - it protects them in the event of drops in the property market.
Everyone goes on about house prices as though it's some kind of national scandal or conspiracy to stop people buying but sadly, it's simple economics. Sure, it's everyone's right to own property if they can afford it but if they can't, then there's not that much that can be done.
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