{"id":2999,"date":"2018-10-08T05:46:56","date_gmt":"2018-10-08T05:46:56","guid":{"rendered":"http:\/\/www.styledeals.co.uk\/blog\/young-people-with-deposits-still-cannot-buy-homes\/"},"modified":"2018-10-08T05:46:56","modified_gmt":"2018-10-08T05:46:56","slug":"young-people-with-deposits-still-cannot-buy-homes","status":"publish","type":"post","link":"https:\/\/www.styledeals.co.uk\/blog\/young-people-with-deposits-still-cannot-buy-homes\/","title":{"rendered":"Young people with deposits still cannot buy homes"},"content":{"rendered":"\n<div property=\"articleBody\">\n<figure class=\"media-landscape no-caption full-width lead\"><span class=\"image-and-copyright-container\"><\/p>\n<p>                <img loading=\"lazy\" decoding=\"async\" class=\"js-image-replace\" alt=\"Young people looking in an estate agents' window\" src=\"https:\/\/ichef.bbci.co.uk\/news\/320\/cpsprodpb\/6CED\/production\/_103758872_estate3.jpg\" width=\"976\" height=\"549\"\/><span class=\"off-screen\">Image copyright<\/span><br \/>\n                 <span class=\"story-image-copyright\">Getty Images<\/span><\/p>\n<p>            <\/span><\/p>\n<\/figure>\n<p class=\"story-body__introduction\">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.<\/p>\n<p>The Institute of Fiscal Studies said house prices in England have risen by 173% over two decades. <\/p>\n<p>But average pay for 25-34 year-olds has grown by just 19% over the same period.<\/p>\n<p>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. <\/p>\n<ul class=\"story-body__unordered-list\">\n<li class=\"story-body__list-item\"><a href=\"https:\/\/www.bbc.co.uk\/news\/business-43788537\" class=\"story-body__link\">Young people face renting &#8216;all their lives&#8217;<\/a><\/li>\n<li class=\"story-body__list-item\"><a href=\"https:\/\/www.bbc.co.uk\/news\/business-45084530\" class=\"story-body__link\">How housing has divided the young<\/a><\/li>\n<\/ul>\n<p>The IFS also said that higher rental costs &#8211; up from an average \u00a3140 a week to \u00a3200 a week in England &#8211; have &#8220;reduced the purchasing power of young adults&#8217; incomes&#8221; and made it harder to save for a deposit.<\/p>\n<p>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.<\/p>\n<p>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.<\/p>\n<p>Onward says the average gain per property would be \u00a315,000, or \u00a37,500 divided between the landlord and tenant.<\/p>\n<h2 class=\"story-body__crosshead\">&#8216;Inequality&#8217;<\/h2>\n<p>The centre right think tank estimates 88,000 households would be eligible to take up the relief each year, costing the Treasury around \u00a31.32bn a year. <\/p>\n<p>A spokeswoman for the Treasury declined to comment.<\/p>\n<p>The IFS said that the proportion of 25-34 year olds who own a house has dropped from 55% two decades ago to 35%.<\/p>\n<p>Meanwhile, the rate of homeownership for those aged between 65-74 years old has risen gradually to around 80%.  <\/p>\n<figure class=\"media-landscape no-caption full-width\"><span class=\"image-and-copyright-container\"><\/p>\n<p>                 <span class=\"off-screen\">Image copyright<\/span><br \/>\n                 <span class=\"story-image-copyright\">Get#<\/span><\/p>\n<p>            <\/span><\/p>\n<\/figure>\n<p>Polly Simpson, a research economist at IFS and a co-author of the study, said: &#8220;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.&#8221;<\/p>\n<p>The IFS said that it is key for the government to increase the supply of homes.<\/p>\n<p>It said that planning restrictions, such as within the Green Belt, prevents the construction of new homes in response to demand.<\/p>\n<p>&#8220;Without increasing supply, policies to help young adults get onto the housing ladder will continue to push up house prices &#8211; and potentially rents too, which would hurt those young adults who will never be able to buy their own home,&#8221; it said.<\/p>\n<hr class=\"story-body__line\"\/>\n<p><strong>Are you a young adult who cannot afford to buy a cheap home in your area? Email <\/strong><a href=\"mailto:haveyoursay@bbc.co.uk?subject=younghomes45776289\" class=\"story-body__link-email\"><span class=\"icon email\"\/><span class=\"story-body__link-email-text\">haveyoursay@bbc.co.uk<\/span><\/a><strong> with your experiences.<\/strong><\/p>\n<p>Please include a contact number if you are willing to speak to a BBC journalist. You can also contact us in the following ways:<\/p>\n<ul class=\"story-body__unordered-list\">\n<li class=\"story-body__list-item\">WhatsApp: <strong>+44 7555 173285<\/strong>\n<\/li>\n<li class=\"story-body__list-item\">Tweet: <a href=\"http:\/\/twitter.com\/BBC_HaveYourSay\" class=\"story-body__link-external\">@BBC_HaveYourSay<\/a>\n<\/li>\n<li class=\"story-body__list-item\">Text an SMS or MMS to <strong>61124 <\/strong>or <strong>+44 7624 800 100<\/strong>\n<\/li>\n<li class=\"story-body__list-item\">Please read our <a href=\"http:\/\/www.bbc.co.uk\/usingthebbc\/terms\/\" class=\"story-body__link\">terms &amp; conditions<\/a> and <a href=\"http:\/\/www.bbc.co.uk\/usingthebbc\/privacy-policy\/\" class=\"story-body__link\">privacy policy<\/a>\n<\/li>\n<\/ul>\n<\/div>\n<p><script async src=\"http:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\n<br \/>\n<br \/><a href=\"https:\/\/www.bbc.co.uk\/news\/business-45776289\">Source<\/a> by <a href=\"\">[author_name]<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Image copyright Getty Images 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. But average pay for 25-34 year-olds has &hellip; <\/p>\n","protected":false},"author":0,"featured_media":3000,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-2999","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general"],"_links":{"self":[{"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/posts\/2999","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/comments?post=2999"}],"version-history":[{"count":0,"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/posts\/2999\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/media\/3000"}],"wp:attachment":[{"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/media?parent=2999"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/categories?post=2999"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/tags?post=2999"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}