This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at https://www.bbc.co.uk/news/business-45776289
The article has changed 9 times. There is an RSS feed of changes available.
| Version 4 | Version 5 |
|---|---|
| Young people with deposits still cannot buy homes | Young people with deposits still cannot buy homes |
| (35 minutes later) | |
| 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. | 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 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. |
| 'Impossible challenge' | 'Impossible challenge' |
| Bradley Tucker, a 27-year-old recruitment worker from King's Langley in Hertfordshire, is struggling to save for a deposit. | Bradley Tucker, a 27-year-old recruitment worker from King's Langley in Hertfordshire, is struggling to save for a deposit. |
| He and his partner have moved from a rented flat to a shared house, so they can start to save something. | |
| But while his Dad - a bricklayer - managed to buy a house after just one year, Bradley estimates it will take them at least a decade. | But while his Dad - a bricklayer - managed to buy a house after just one year, Bradley estimates it will take them at least a decade. |
| "On a current trajectory, the cheapest deposit is £15,000 to £20,000, so you're looking at 10 years plus," he told the BBC. | "On a current trajectory, the cheapest deposit is £15,000 to £20,000, so you're looking at 10 years plus," he told the BBC. |
| "For young people, it seems an almost impossible challenge. It's a depressing outlook." | "For young people, it seems an almost impossible challenge. It's a depressing outlook." |
| 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 for both the landlord and tenant, helping those tenants to apply for a mortgage. | |
| Compare rent affordability in your area with Britain as a whole | Compare rent affordability in your area with Britain as a whole |
| Contains OS data © Crown copyright and database rights 2018. Scroll down for methodology. Insufficient data is available for Northern Ireland. | Contains OS data © Crown copyright and database rights 2018. Scroll down for methodology. Insufficient data is available for Northern Ireland. |
| The Residential Landlords Association (RLA) said it welcomed the idea of lower taxation, but said landlords would prefer to get tax relief on rent from long-term tenancies, or a refund of Stamp Duty. | The Residential Landlords Association (RLA) said it welcomed the idea of lower taxation, but said landlords would prefer to get tax relief on rent from long-term tenancies, or a refund of Stamp Duty. |
| '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. | Are you a young adult who cannot afford to buy a cheap home in your area? Email haveyoursay@bbc.co.uk with your experiences. |
| Please include a contact number if you are willing to speak to a BBC journalist. You can also contact us in the following ways: | Please include a contact number if you are willing to speak to a BBC journalist. You can also contact us in the following ways: |
| Or use the form below | Or use the form below |