Battle to get on the housing ladder
YOUNG PROFESSIONALS WORK HARD AND SAVE BUT STILL CAN’T AFFORD TO BUY OWN HOME
YOUNG professionals fear they will never be able to own a home in Manchester’s booming housing market.
Despite working long hours and trying to put money away every month, some, like Lucinda Quinn, are losing all hope of ever buying their own home.
Market researcher Lucinda, 25, moved to Manchester three years ago and lives in Chorlton, but despite earning more than £20,000 she is still finding it impossible to save enough to buy her own home.
After researching different parts of Greater Manchester, Lucinda discovered she would need a deposit of at least £10,000 – which she says is a pipe dream.
“I’ve been struggling to get on to the housing ladder and have resigned myself recently to the idea that I’ll never be able to afford to buy a house in Manchester, or potentially one at all, even in my home city of Liverpool which is much cheaper,” she says.
New research from the Resolution Foundation suggests she is not alone in finding that home ownership in Greater Manchester has fallen from 73 per cent in 2003 to 58pc in 2016.
And at the same time the proportion of private renters in the region has more than tripled, rising from 6pc to 20pc.
Young professionals like Lucinda are now trapped into paying thousands a year in rent.
She added: “I always prided myself of being good with my money and being able to save. I moved to Manchester back in 2014 after finishing university in order to start my career, and have managed to secure a number of pay rises in that time.
“Unfortunately, I’ve not really been able to feel the benefit of that, and been able to save for a deposit like I thought I might be able to. I still save, but the amount I can save month to month never seems to be enough.
“Since moving to Manchester, renting, particularly in house shares, has become more and more expensive, meaning even after pay rises, and with the increased cost of living there has been in the past few years, I’m in the same precarious financial position I was in before, which just leaves you feeling like a failure.
“At this age, my mum was a homeowner, and had a comfortable lifestyle, disposable income, living the life of a ‘proper adult.’ Until a few months ago, I was living in a bedroom with the house’s washing machine in it.”
Since moving to Greater Manchester three years ago, Lucinda has moved house six times, which has made it even more difficult to save.
She said: “I am always ready to move at a moment’s notice. The landlord could come round and ask for more money – which has happened to neighbours – or decide to sell the property because they can get more money that way, which means I have to move.” And Lucinda is not alone. According to research from campaign group, Housing the Powerhouse, 84pc of 24 to 35-yearolds in Greater Manchester want to buy their own home.
But in the same study, over 50pc of people know someone who is struggling to do just that.
Mark Shaw, 29, from Gorton, is another one of those who is finding it increasingly difficult to get his foot on the ladder.
The average house price in Gorton is around £96,000 which means that for a 10pc deposit, like Lucinda, he will need to save
around £10,000. Earning around £20,000, he says that buying just isn’t an option.
The business developer is now living at home with his parents in order to save up.
He said: “Where I live there are a lot of terrace houses and they are generally the cheapest homes to buy, but what happens is investors buy them and then rent them out, which drives up rent in the area.
“They are all just being snapped up by landlords and I can’t pay £500 or £600 a month on rent and still save to buy a home.”
Mark even says that Help to Buy is no use to someone like him: “I just don’t really see any incentive in the Help to Buy scheme – you end up having to pay the money back anyway, so I would rather pay a larger amount now and have smaller monthly repayments.
“If you are on your own then it is really tough because you can go into private rental and lose money or stay home and wait until you can buy.”
After falling in love with Manchester five years ago, procurement specialist Gerard Saint-Etienne, 36, decided to stay put.
He finds himself in a similar position to countless others. Even with a 5pc deposit he has no hope of owning his own home.
With the average house price in Prestwich between £180,000 and £210,000, Gerard would still need almost £10,000 for a deposit.
With an income of £20,000 he says that even properties in cheaper areas are still out of reach. He would also struggle to save for a deposit of £6,000 to £8,000.
Since moving north from Leicester, he has found himself paying hundreds of pounds on rent and says it is a struggle to save enough each month. Currently renting a one-bedroom flat in north Manchester, Gerard does not believe he will ever be in a position to buy a home.
He said: “I am not even close to buying my own home.
“I have always wanted to own my own home, looked in estate agents’ windows and brochures, etc, but I am put off by the prices. You need to have a massive wage to be able to afford your own place.
“The deposits are really difficult to save for as well. I don’t think I have ever had enough money in my bank account, at any one time, to be able to afford one.
“I don’t believe that I will ever be able to own my own home. I would need to be earning a lot.
“Even if I buy with a partner, if we are both on similar incomes then we will still be saving for some time.”