And what is the government’s answer? Build nore expensive homes to buy!
“The number of 25-year-olds who own their own home has more than halved in the last 20 years as soaring prices and a generational shift have knocked young people off the housing ladder.
Research by Savills for the Local Government Association found that 46pc of all 25-year-olds owned their home 20 years ago, compared to 20pc now. It is not just young people who have been left out of home ownership, which has fallen among people of all ages 6.8pc since the peak in October 2004, and it now stands at 64.1pc.
This fall has been caused by the high cost of living, which has grown at a faster rate than wages. While renters pay an average 34pc of their total household income on rent, and social renters pay 29pc; the average homeowner pays just 18pc their income on a mortgage.
Average house prices are now at 7.9 times average earnings, with the need for a high deposit creating an impassable barrier for some young aspiring homeowners. …”