Апреля 24, 2018


Home ownership among young adults has 'collapsed'

17 Февраля 2018, 12:54 | Gordon Grant

One in four middle-earning young adults own their own home – down from two in three 20 years ago, claims report

Homeownership amongst millennials plummets

The research found that over the twenty year period, the share of this demographic who own their own home has shifted closer to the percentage for the lower income group (8%), than that recorded for the higher income group (64%).

For 90 per cent of millennials, average house prices are more than quadruple their average after-tax income, while for 40 per cent, prices are more than 10 times their income.

Over the past 20 years, average house prices have grown aroundseven times faster than the average incomes of young adults.

The chance of owning a home for young adults in the United Kingdom has more than halved in the last 20 years, according to the Institute of Financial Studies (IFS).

The plunge in homeownership is primarily due to a rapid rise in property prices relative to incomes, the IFS said, making buying a home more inaccessible to young adults than it was in the past.

One in four middle-earning young adults own their own home – down from two in three 20 years ago, claims report
Young middle-earners fall down the property ladder

Meanwhile, young adults from wealthy backgrounds were increasingly likely to own a property, compared to those from less privileged families.

The IFS found that on average "middle-income" young people aged between 25 and 34 had between £22,000 and £36,000 to spend each year after taxes.

For almost 90% of 25 to 34 year olds, average house prices in their region are more than four times their annual after-tax family income; for almost 40% house prices are more than 10 times their income.

The government abolished stamp duty for the majority of first-time buyers but was widely criticised after the independent Office for Budget Responsibility warned it would push up house prices, benefiting those who already owned homes.

"Our conclusion is simply that increases in house prices relative to incomes of young adults can fully explain what's happened", said Andrew Hood, senior research economist at the IFS and one of the authors of the report.

Читайте также: Reply is working on bringing Smart Reply to all messaging apps

"With the average deposit for first-time buyers in the United Kingdom at £33,000, and an average wait of eight to 10 years to reach it, it's clear that much more needs to be done to help people on their journey".

"But we want to go further and faster and our ambitious plan backed by targeted investment will help even more people by delivering the homes Britain needs for young families, key workers and those on low and middle incomes", he added.

John Healey, Labour's shadow housing secretary, said the research should be a "wake up call" for the ministers.

The Government introduced the Help to Buy scheme in 2013 to bolster access to financial support for first-time buyers unable to pay large deposits, and scrapped stamp duty for nearly all first-time buyers in November's Budget.

При любом использовании материалов сайта и дочерних проектов, гиперссылка на обязательна.
«» 2007 - 2018 Copyright.
Автоматизированное извлечение информации сайта запрещено.

Код для вставки в блог



Other News

Trending Now

Apple could be rethinking its release cycle for iOS and macOS
This feature is targeted to begin public runs in iOS 12 and macOS 10.14 with Apple's own Home app being one of the big test beds. This also comes in the wake of Apple dropping the 3.5 mm headphone jack feature since the release of the iPhone 7.

Twitter bans US politician for photoshopping 'Cheddar Man' image on Meghan Markle
They ended their visit to Scotland by attending a reception celebrating the achievements of young people . Mrs Thorpe said: "Meghan thanked us for braving the cold for them".

Xiaomi Launches Redmi Note 5 And Redmi Note 5 Pro In India
Unlike the Redmi Note 5 , it has Beautify 4.0 software which will result in better portrait mode photos, the company claims. The phone is backed by a dual-camera setup, making it first smartphone under Redmi series to feature dual rear cameras.

Intelligence Chiefs: Russia intends to keep meddling in USA elections
An investigation by a House intelligence committee has led to partisan squabbling between Republicans and Democrats. Coats described a range of ways in which Russian Federation might try to influence this year's vote.

US Section 232 options justified, would not hurt downstream: Commerce
A quota on all imports from all countries equal to a maximum of 86.7% of their 2017 exports to the United States. It's far too early to know how the Trump administration's proposed tariffs would shake out in the long run.

Trump's NASA budget focuses on Moon with an eye towards Mars
The ISS is not exclusively a Nasa project - Russia , Europe, Japan and Canada are all involved, as are several private companies. Congress earlier this month passed a spending package that set limits through the end of the next budget year.

NZ vs England 4th Tri Series T20 match in numbers
Instead, he was removed on 65, lazily working a leg-side full toss from Rashid to the returning Liam Plunkett at short-fine leg. Sodhi, Boult and Mitchell Santner took two wickets apiece, while Southee claimed one.

Google Introduces AMP for Gmail, Bringing Web-like Actionable Content to Email
You can image how such a feature can lower the number of tabs that open as a result of clicking links within emails. Today, Google announced an extension of the AMP program to include another popular communications medium.

Australia deputy PM's popularity wanes amid scandal over affair
Mr Turnbull on Thursday announced the ministerial code of conduct had been rewritten. The pair moved in together after Joyce separated from his wife previous year .

Leadership row drags Germany's SPD into new crisis after coalition deal
German's Social Democratic grass roots are in revolt and may veto a new government in their upcoming vote. In a cartoon on Tuesday, the Sueddeutsche Zeitung daily showed Nahles with a whip riding an SPD snail.