Mid-earners 'locked out of buying a home'

Mid-earners 'locked out of buying a home'
From BBC - February 15, 2018

The extent at which young people are locked out of the British housing market has been revealed in new figures from economists.

The biggest decline in homeownership in the last 20 years has been among middle-income 25 to 34-year-olds, the Institute for Fiscal Studies (IFS) said.

In 1995-96, 65% of this group owned a home, compared with 27% in 2015-16.

The biggest drop was seen in the South East of England.

Middle earners, according to the IFS, are those with take-home household pay (which could be an individual or jointly as a couple) of between 22,200 and 30,600 a year.

A third of them are university graduates, while 30% left school at 16. Three-quarters of them live with a partner, and around 60% have children.

The proportion of these middle earners owning a home (27%) has moved closer to the likelihood of those with a low income (8%) than those on a high income (64%).

'Money down the drain'

Tom Bourlet pays 535 per month to rent a room in a flat in central Brighton.

"I have been renting it for two-and-a-half years. It really is money down the drain," he says.

"I do not really see much for it - it's not the biggest room."


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