I heard something on the radio yesterday. The average age of a first time buyer, not supported by the bank of mum and dad, is thirty-seven. Thirty-seven years old before you have enough financial history to leap the hurdle of deposit and get a mortgage. Mid-life before you can start to buy a house of your own. And things are only going to get worse.
As the ramifications of the recent financial collapse continue to unfold. It is not inconceivable that the average age of a first time buyer will push beyond forty. This delayed ability to join the fraternity of home owners will have a devastating effect on any buyer’s ability to repay a mortgage before retirement. That’s a lot of people who will never be able to get a mortgage. Never be able to buy a house.
Some might look at the current situation and argue we are going through a “natural” period of correction. Reduced numbers of first time buyers will force down the inflated price of housing. Thus allowing more first time buyer’s to enter the market. Perhaps that is true. What is more likely is that those who already have equity will be able buy up cheap property and build their portfolio. Fuelling the ever increasing rise in prices. Pushing the average age of first time buyer’s up even higher. The truth is. A lot of people will never be able to buy. And will be forced to rent for their entire life.
The usual argument against renting is that it is a waste of money. You give away all that money. And have nothing to show for it. But renting is only an issue if you look at your life as the accumulation of wealth. If you look at rent as the cost of living. It becomes less of an issue.
So why are we so obsessed with owning property in this country? Margaret Thatcher made it the cornerstone of her monetarist agenda by selling off our stock of council housing in the eighties. She sold the family silver to socially engineer the reduction of the welfare state. She made property a pension. Ask yourself. What happens to all this house wealth in the end? It is rarely passed on to the next generation. More often than not. It is levied to pay for the home owner’s retirement. Or worse still. Sold to pay the cost of residential care.
So what’s going to happen to the increasing number of people who will never be able to buy? They won’t have the cash-cow of a property to fund their retirement. What does the future hold for them? Will they have to continue working well beyond the statutory age of retirement? Or will they be abandoned, forced to live in abject poverty? That won’t happen. The state will step in and help. What state? The current government stated aim is the reduction of the state. Less state. Less help. So private companies will come to the rescue and fill the gap. What sort of care will those who don’t have property to levy actually get? The answer. Not very good care. The state will pay them? I don’t think so. Charity then? Charity will step in to help the venerable. How very progressive. It’s that kind of thinking that consolidated the need for the labour movement in the nineteenth century.
Perhaps that’s where the future lies. The rise of a genuine labour movement in this country. Will people’s inability to buy actually change people’s understanding of the world? Perhaps the coming privations will galvanise enough of us to finally force real and lasting social change for the better. Perhaps it will reawaken left-wing politics in this country.
The sceptic in me doubts it. I would love to be wrong. But I think the vast majority of us have been blinded by the glitter of wealth for it’s own sake. We’re in love with the big screen televisions that stream advertisement for the cult of celebrity like “The X Factor” and the soon to be gone “Big Brother”. We’ve had these bright lights for too long. Perhaps so long. The glare has blinded us. Made it hard to see. All that glitters is not gold.