Friday, 12 October 2018

Young People With Deposits Still Cannot Buy Homes


About 40% of young adults cannot afford to buy one of the cheapest homes in their area even with a 10% deposit, according to a new research. The Institute for Fiscal Studies said house prices in England have risen by 173% over two decades. But average pay for 25-34 year-olds has grown by just 19% over the same period. In 1996, 93% of those with a deposit who borrowed four and a half times their salary could purchase a home but that fell to 61% in 2016. The IFS also said that higher rental costs - up from an average £140 a week to £200 a week in England - have "reduced the purchasing power of young adults' incomes" and made it harder to save for a deposit. Read more on the BBC website.

No comments: