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| Young people with deposits still cannot buy homes | Young people with deposits still cannot buy homes |
| (about 7 hours later) | |
| Around 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. | Around 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 of Fiscal Studies said house prices in England have risen by 173% over two decades. | The Institute of 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. | 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. | 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. | 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. |
| Onward, a think tank, has suggested that the government should give UK private renters a chance to buy their home by rewarding landlords who sell to long-term tenants. | Onward, a think tank, has suggested that the government should give UK private renters a chance to buy their home by rewarding landlords who sell to long-term tenants. |
| It says buy-to-let properties should be eligible for 100% capital gains tax relief if sold to a sitting tenant who has lived there for three years. | It says buy-to-let properties should be eligible for 100% capital gains tax relief if sold to a sitting tenant who has lived there for three years. |
| Onward says the average gain per property would be £15,000, or £7,500 divided between the landlord and tenant. | Onward says the average gain per property would be £15,000, or £7,500 divided between the landlord and tenant. |
| 'Inequality' | 'Inequality' |
| The centre right think tank estimates 88,000 households would be eligible to take up the relief each year, costing the Treasury around £1.32bn a year. | The centre right think tank estimates 88,000 households would be eligible to take up the relief each year, costing the Treasury around £1.32bn a year. |
| A spokeswoman for the Treasury declined to comment. | A spokeswoman for the Treasury declined to comment. |
| The IFS said that the proportion of 25-34 year olds who own a house has dropped from 55% two decades ago to 35%. | The IFS said that the proportion of 25-34 year olds who own a house has dropped from 55% two decades ago to 35%. |
| Meanwhile, the rate of homeownership for those aged between 65-74 years old has risen gradually to around 80%. | Meanwhile, the rate of homeownership for those aged between 65-74 years old has risen gradually to around 80%. |
| Polly Simpson, a research economist at IFS and a co-author of the study, said: "Many young adults cannot borrow enough to buy a cheap home in their area, let alone an average-priced one. These trends have increased inequality between older and younger generations." | Polly Simpson, a research economist at IFS and a co-author of the study, said: "Many young adults cannot borrow enough to buy a cheap home in their area, let alone an average-priced one. These trends have increased inequality between older and younger generations." |
| The IFS said that it is key for the government to increase the supply of homes. | The IFS said that it is key for the government to increase the supply of homes. |
| It said that planning restrictions, such as within the Green Belt, prevents the construction of new homes in response to demand. | It said that planning restrictions, such as within the Green Belt, prevents the construction of new homes in response to demand. |
| "Without increasing supply, policies to help young adults get onto the housing ladder will continue to push up house prices - and potentially rents too, which would hurt those young adults who will never be able to buy their own home," it said. | "Without increasing supply, policies to help young adults get onto the housing ladder will continue to push up house prices - and potentially rents too, which would hurt those young adults who will never be able to buy their own home," it said. |
| Are you a young adult who cannot afford to buy a cheap home in your area? Email haveyoursay@bbc.co.uk with your experiences. | |
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