home
Image: © coffeebeanworks via Pixabay

40% of young people couldn’t afford the cheapest home in their area

Even if they'd save a 10% deposit.

What it means: The IFS (the Institute for Fiscal Studies – they’re a politically independent organisation who do lots of social and economic research then tell the government what it should be doing) has done some number-crunching on house buying, and concluded young people are pretty much screwed. The problem is that over the last twenty years, house prices have gone up more than young people’s wages have. A lot more, in fact – a 173 percent rise for houses vs. a 19 percent for wages.

The upshot is that home-ownership is increasingly becoming a thing only for older and/or richer Brits. In 1993, pretty much everyone who had saved enough for a deposit and qualified for a mortgage loan of 4.5 times their salary could buy a house. Now only the richest half (well, 61 percent) can. And while 80 percent of 65-74 year olds own their home, only 35 percent of 25-34 year olds do.

Lots of people are trying to come up with ways to change this. The government set up a ‘Help to Buy’ program which was supposed to give young people extra money to buy a home. A think tank called Onwards has suggested that landlords could be encouraged to sell houses to long-term tenants by letting them off the taxes you normally pay when you sell a house.

But others say that policies like these mostly helps the richest, and those who already own a house, to buy. They think that the best way the government can give everyone a fair chance at owning a house is to build affordable ones in the first place. Cheaper housing would also mean that fewer people have to get into lots of debt to buy their house, which can cause them financial problems if something bad happens, like them losing their job.

Recent articles

Reader Comments

  • WhereAreTheVikings

    What a terrible, terrible shame. Western Civilization nurtured capitalism, and now capitalism is destroying it. And these young people seem to welcome the invasion of their homeland. The media and schools have been very efficient in wiping out all traces of blood and soil.

    • prollawalllynotahumanoid

      Capitalism isn’t the problem. It’s corrupt politicians taking bribes and kickbacks from Globalists and the Chinese.

      • WhereAreTheVikings

        Maybe I should have said crony capitalism. Although Italians importing Chinese to make “Italian leather” shoes is not crony capitalism. It is capitalism, pure and simple.

        • prollawalllynotahumanoid

          That would be crony capitalism and globalism combined. They aren’t concerned with the affect their policies have upon their citizens, the health and welfare of their society and culture or their economy. What it isn’t is fair-free trade to further national interests.

          • WhereAreTheVikings

            I’ve always seen them as one and the same, but perhaps they need to be named individually, just to bring home the point.

      • WhereAreTheVikings

        But now that travel is so easy and borders are virtually down through H1bs and the like, theoretically you can’t blame capitalists for the pursuit of cheaper labor, although I do heartily blame them not being more patriotic than that. Perhaps the emerging nationalism will force them to voluntarily do what they should have morally been doing all along, and that is employing business practices that preserve their countries and nationalities. The government should be doing everything it can to encourage that, to the extent that small government should do anything but guard the borders and strictly, drastically, limit immigration.

      • Henry Lam

        It is China with its corrupted mindset affecting the world.

        • prollawalllynotahumanoid

          No it is not. Capitalism is the fairest and least corrupt system of all.

          Socialism and communism is based on authoritarianism, coercion and police intimidation. It has and always will be rife with criminality, bribes and kickbacks.

          Corruption can be anywhere but it is the very basis of socialism and communism.

    • Henry Lam

      The government is too weak. They do not understand the mindset of communists and how they educate their people. Those communist people are only loyal to their country and could be dangerous. The immigration law should only accept those who accepted multiculturalism and taught from a democratic education system. This virus events clearly has shown how stupid to take China as a friend.

      • WhereAreTheVikings

        The government is not too weak. Just weak-minded about some things.

  • Gabi Rodrigues

    For how many days can a country maximum close their borders to foreigners maximum? Like now, with the virus, everyone is using 30 days. Can it be more?