Young priced out of homes in their area
EVEN the cheapest homes are out of reach for at least 40% of young adults, a study showed.
In 1996 more than 90% of 25- to 34-year-olds would have been able to buy a house in their area with a 10% deposit.
But the Institute for Fiscal Studies found that by 2016, that proportion had been slashed to 60% – leaving homes out of reach for the other 40%.
The think tank found average house prices have risen by 173% since 1997, after inflation, while young adults’ real incomes have increased by only 19%.
Polly Simpson, a Research Economist at the IFS, said: “These trends have increased inequality between older and younger generations.”