Post the EU referendum, we’ve been hearing about the pros and cons of Brexit and whether our economy will prosper or crumble. With the allegedly low selling prices home properties, it seemed like this may just be the perfect opportunity for someone to invest in a new home. However, the latest news suggests that people owning their homes in England has dropped to its lowest level in 30 years.
This scenario is due to the rise of housing prices while salaries lag behind as being too weak for property affordability.
Home ownership had risen in 1986 with Margaret Thatcher’s government introducing the right-to-buy policy for council houses. According to the thinktank, Resolution Foundation, home ownership in England had reached 71% in April 2003, which fell to 64% in February 2016.
Weak salaries make it difficult to purchase properties, leading people to find rented accommodation, which in fact isn’t that cheap. Rent prices tend to hit the roof as well, which makes it difficult to save for a deposit for a new home.
Would this new supposedly low housing price make it easier for people to buy properties? It may seem positive for some, it may take a while to actually be able to afford a home, even if the property prices have been slashed. With a measly income and tonnes of bills to get through, saving money can be difficult, especially when you are paying for an expensive rented accommodation.