YesEn-Z is being “locked out” home ownershipThe campaigners have warned, as the buyers now pay six times more to the house than their parents.
analysis of Fare, Property And Salary Data by Independent Reveals that in 1995 the average homebuir had to save a third of their salary – just one third of their salary – £ 5,000 – DepositWhile today’s first buyers are Average deposit Almost double as average salary.
Land registry data in England shows that Average house price now cost £ 286,594 – About six times more than three decades ago (£ 50,679).
But average salary At that time, barely exceeded doubled, from £ 15,034 to £ 37,430, while the advance cash required for deposits is more than 10 times on average.
Fales are also increasing, According to the UK-Wide Private, the average monthly rates in the last five years are going from £ 1,025 to £ 1,343. Tenant Acquisition.
The campaign group generation Chief Executive Officer Ben Twomayi, “The government did not give a break to promote the break, many people can never be able to buy their home.” Rent Warned.
“Generation is jade Generation fareThey get out of the ownership of the house because they face the cost of more rent than any other generation before them. Trying to save for a deposit to buy a house while renting is like pushing a boulder on a hill that is becoming a stator and stator. ,
Young people who have managed to save For Deposit It is said that he feels that he had to “sacrifice” to do so.
“This is leaving your entire social life,” said 26-year-old Paris, who lives in London, who started saving to buy his place after a break-in and security concerns while renting it.
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“My mother asks me, ‘What do you do, you just stay all the time?” And I say, ‘Okay, because we cannot tolerate it.’
Even Hostage advisor Admit that the challenges faced by young buyers are worse than the previous decades.
Horticulture Bureau (MAB) Deputy CEO Ben Thompson bought his first house at the age of 22 with about 100 percent loan. But he knows that his situation will now be more difficult.
They told Independent: “I hate the arguments where people just say,” Oh, in our day, we had to save, and they have become very easy these days. ” I do not buy in it.
And It will not be enough to be frugal aloneChris Foy, a real estate and housing economist who gave lectures at the University College London (UCL), said that advice for Jane-Z only recalls the entire picture to protect or invest from more intelligence.
He said, “I mean, only that you can do with a little, right? The only is that we can tell the youth to invest wisely when they don’t have much to invest in the first place,” he said.
“People are paying so much for rent, and their income is not as much as he enjoyed the previous generations. I don’t think [saving more] Dial is going to shift. ,
The average annual income in 2025 is £ 37,430, which shows data from the office of National Statistics (ONS). After tax and national insurance, the average earner is left with £ 30,469 per year.
According to the Price Index of private rent (PIPR), half of it (£ 16,116) can be easily spent on rent, with average monthly rates at £ 1,343.
But according to Halifax, according to Starter Homes, the average house deposit is now £ 61,000.
This means that homes are now being sold for about eight times more than the average salary, with a salary of almost double one year – and in 1995 they were 12 times more.
On average salary, a person pays average fare, left with about £ 1,150 per month for all other costs including bill, lifestyle, food, travel and savings.
If there is a saving of £ 500 of that month, it will take more than a decade to manufacture the average deposit, even before paying a heavy mortgage.
This means that now there is a growing division among people accessing generations – Otherwise known as “Mam and Dad’s bank” – And without those people.
Data from estate agents suggest that more than half of the first time buyers had some support from their family last year, to the tune of £ 9.6BN in gifts and loans.
But economic inequality between home owners and tenants creates more and more financial partitions.
Over a period of 30 years, The Independent CAlculections from ON data show that tenants can spend an average of £ 483,000, if private fare prices remain the same, without financial security of owning your home for it.
“This is not just for young generations, it is middle-aged, older generations as well as those who have not accumulated other forms of housing or money,” Mr. Foy said Independent,
“They, therefore, have to be sacrificed, right? They have to live in small places, change their life decisions. They may have to stay away from work. And all these are very inappropriate and uncomfortable ways that people deal with these strength obstacles.”
So many young Britain is likely to be “trapped rent” for decades, Mr. Tomle warned.
“Jane-Z has spent his entire adult life to face the cost of housing that is getting much faster than his earnings,” he said.
According to the Institute for Fiscal Studies, the ownership rate of the house is low between young people (under 34 years of age) at only 39 percent. It is much lower than the peak of 59 percent in 2000, but has been increasing continuously in the last decade.
However, some genes are determined to get in Z Regardless of housing ladderAnd are ready to create those sacrifices for long -term benefits.
Earlier this year, Paris gave a deposit of £ 14,000 on a small flat in South -East London.
After a series of negative experiences during the fare, he rescued for many years, which pushed him to the ownership of the house.
Before purchasing his house, Paris was paying £ 950 per month for renting a room – and when trying to find a new rent, she was surprised at rising prices.
“At that moment, I tapped. If a room part is £ 1,400, I will put that money in my house,” he said.
Others are turning to high -risk investments to raise cash. 24 -year -old Luke has put most of his savings in cryptocurrency.
“Really, I think is the only solution [large deposits] Some high-risk, high-Return method like Crypto. The British population has almost no option.
“Of course, this greatly affects my social life. It is disappointing. But I try not to focus on short term. The UK is a very land-ownership-based economy. And as soon as you are the owners of the property, life just becomes dramatically easy,” he said that Independent.
Labor is focusing on the government, along with increasing population and stable real estate market Housebuilding boost And protect tenants Ban “no-fault” eviction And making all tenants periodic.
Horticulture advisor Thompson believes that it would be beneficial to promote home ownership for the ambitions of Chanhel Reeves’ economic development.
He said, “Overseas of the house and buying a house leads to a lot of economic activity and development, which is definitely quite correct at the moment where the government is coming from,” he explained.
“You have also found a supporting regulatory environment. So if you add all those factors, there is a reason for optimism.”
The government has also allocated £ 39bn for affordable housing in a decade – some Paris believes that it is important to deal with the problem.
“The only solution to exit housing crisis More councils have to build housing, ”he said.
“Home ownership in this country is an object; it is an investment and a vehicle for your pension, and it should not be so.”
A spokesman of the Ministry of Housing, Community and local government said: “The acute and disgusting housing crisis has inherited this government, dropped a generation from the homeowner and paid a record fare bill.”
“This is why our plan for change took steps to achieve Britain’s construction and distribute 1.5 million houses, while dealing with excessive fare demands.”
“We have already announced the biggest boost to social and affordable housing in a generation, and our tenants’ rights bills will change the private rental sector for tenants.”