The Housing Ladder

[Mich the Tester]

In another thread, The Emperor Caesar referred to a thing called the ‘housing ladder’. It seems he was not talking about an implement used by builders and tradesmen for ascending the walls of buildings, but a phenomenon where people desire bigger and more expensive houses.

Personally I have made three steps on this ‘ladder’. One was when I went to poly and rented a bedsit. The next was when I started work and bought a small terraced house with Lady Tester. The third was when we sold the terraced house and bought a semi-detached house with reasonable sized garden in a nice neighbourhood. So, we have arguably joined in the rush to ascend the ‘housing ladder’.

But this is where our journey up the housing ladder ends. We are satisfied with our house. It has everything we want, like a kitchen, bedrooms, a bathroom, a living room and a garage for storing stuff. It is also quite affordable, and with our repayment mortgage we find ourselves paying less interest every year. Despite minor pecuniary concerns connected to benchtime in 2009, we have at no time been worried about paying the mortgage. This puts us in a position of considerable luxury. At times of good business and good income, we can celebrate our success by visiting fine restaurants and holidaying in luxurious surroundings. In less easy times we can still pay the bills, and can enjoy giving the house a lick of paint to add variety to our habitation.

So, to cut a long story short while it threatens to get Wilmslowesque, why do so many people desire to continue the ascent of the ‘housing ladder’? Do they derive great happiness from the double garage, the mock Georgian facades, the B&Q concrete lions in front of the driveway and the accompanying interest-only mortgage which won’t be paid off when they retire? Or would they be happier just living in a more modest home, paying off the mortgage and enjoying moments of extra income in a more spontaneous fashion?

[OwlHoot]

The problem is today's housing ladder in the UK is more like one of those New York fire escapes that ends 30 feet above the ground.

Without a huge cash handout from M&D or a rich aunt, hardly anyone or any young couple these days can afford to get started.

(unless of course they are immigrants with a couple of kids, or even no kids)

[Platypus]

A very interesting question. As for myself, divorce ended my ascent up the ladder. Indeed a precipitated my descent.

Now I'm very happy in my modest abode, and I'd only 'upsize' if I won the lottery

[Julius Caesar]

The problem is today's housing ladder in the UK is more like one of those New York fire escapes that ends 30 feet above the ground.

Without a huge cash handout from M&D or a rich aunt, hardly anyone or any young couple these days can afford to get started.

(unless of course they are immigrants with a couple of kids, or even no kids)

LOL

But isn't the problem that people want on this "ladder" in the first place? And that it becomes a struggle, rather than just a question of somewhere to live?

[DimPrawn]

The big house is the ultimate status symbol (after the trophy wife).

If you drive an expensive car people just think you are a twat, but if you live in a grand stately home, you are admired and envied as the pinnacle of success.

[Platypus]

Without a huge cash handout from M&D or a rich aunt, hardly anyone or any young couple these days can afford to get started.

Very true. Where I live, even quite modest houses are £300k

So I wonder who can afford them? In the 'old days' the calculation was 10% deposit then 2.5 x join income. Even if someone can muster a 10% deposit, buyers need to earn more than £100k between them. That's a lot of money for people who aren't doctors, dentists, IT contractors, etc.

I know very few people in the real world who earn anything like that. Most 'ordinary' people consider they've hit the big-time when they exceed £40k.

[OwlHoot]

LOL

But isn't the problem that people want on this "ladder" in the first place? And that it becomes a struggle, rather than just a question of somewhere to live?

Well, that's British culture. Always has been, although property ownership was very restricted in times past.

[Mich the Tester]

A very interesting question. As for myself, divorce ended my ascent up the ladder. Indeed a precipitated my descent.

Now I'm very happy in my modest abode, and I'd only 'upsize' if I won the lottery

Ah, so a crisis situation brought about a change which has led you to a happier life?

Your story reminds me of Kipling’s ‘If’;

‘If you can meet with triumph and disaster
And treat those two impostors just the same’

I have a similar attitude even though such misfortune has not befallen me. If I were to win the lottery, maybe I would consider buying a big smart house, but even then I’d probably prefer a multitude of humble abodes in desirable places, such as the Portuguese coast, just to the south of Porto, a little beach house in Costa Rica, and a ski hut in southern Argentina; I’d still have a lot of change from my lottery millions to finance a private jet to get around.

[Mich the Tester]

The big house is the ultimate status symbol (after the trophy wife).

If you drive an expensive car people just think you are a twat, but if you live in a grand stately home, you are admired and envied as the pinnacle of success.

All good arguments for caring less about what other people think of you, or indeed what you think other people think of you. When I see someone driving a nice car, the only thought that goes through my mind is ‘that’s a nice car’. If I see a nice house I think ‘that’s a nice house’. It doesn’t mean I want one or want to be the person inside that car or house.

[Julius Caesar]

In another thread, The Emperor Caesar referred to a thing called the ‘housing ladder’.

So, to cut a long story short while it threatens to get Wilmslowesque, why do so many people desire to continue the ascent of the ‘housing ladder’? Do they derive great happiness from the double garage, the mock Georgian facades, the B&Q concrete lions in front of the driveway and the accompanying interest-only mortgage which won’t be paid off when they retire? Or would they be happier just living in a more modest home, paying off the mortgage and enjoying moments of extra income in a more spontaneous fashion?

Very sensible. I can only think that people in Britain all have their heads turned by the thought of how much money they might make out of their house. Or perhaps have a well-founded fear that a house that they can just afford now may be way out of their reach later in life, so they'd better grab the chance....

I wonder if what it will take to fix it in the UK is a government that is prepared to allow house-building to the extent that the population demands. ISTM that most of the price of a house is scarcity value (or location, which is a bit like paying £10 for your polo shirt plus another £50 for the alligator on ot).