Rising property prices becoming unaffordable for first-time buyers has been a constant theme in recent years. New research has shown just how unaffordable it has become for young adults to buy even low-cost property in local areas. Researchers from the Institute for Fiscal Studies found that only around 60% of young adults would have been able to borrow enough to buy even one of the cheapest homes in their local area. And this is assuming they were able to save enough for a 10% deposit. Compared with twenty years earlier, and on the same basis, 90% of 25 to 34 year olds could afford to borrow to buy a cheaper home in their local area.
Local homes out of reach for young adults
This 856 word blog post considers new research from the Institute for Fiscal Studies showing how local area home ownership has become less affordable for young adults during the past twenty years. Includes comments from two research economists at the IFS. Written on 9th October 2018.