A Whole Generation of People will be locked out of the Home Ownership
Leading economist David Mills has said that UK home ownership will dwindle over the coming years. His fears are born out of rising unaffordable housing values, wages which have failed to keep pace with rising house prices, together with rising rental costs have all conspired to see home ownership fall.
Currently, 63% of Britons own their own home. At its peak home ownership was 73% in 2003 according to figures released by The English Housing Survey in March 2017.
Mr Mills, a former member of the Bank of England’s monetary policy committee said, “I think the owner occupation rate will fall substantially over the next few years. He predicted that a whole generation will be locked out of home ownership and that ownership vs. renting will be 50/50.
“We may be heading towards a more 50:50 balance, though that will take a long time to get to. I don’t think the owner occupation route is a sign of a healthy economy at all.
“There have been many Governments in the recent past that have believed that. The ‘right’ number is whatever emerges from a non-distorted market in which people make decisions based on a realistic assessment of the environment that they live in.”
How Does the Housing Market affect me?
Depending on your time of life, Mr Mills’ predictions which seem to be coming true will have consequences for your financial future. If you own your own home, the rising value could well push it beyond inheritance tax thresholds. If you have children who would like to own their own home, well they could well turn to you to “help them out.” The chances are they will be living with you for longer, and this creates additional often unforeseen expenditure.
If you are not on the housing ladder, how are you going to raise a deposit, keep your pension topped up, pay rent, and live?
These are big questions to answer and managing your investments properly becomes of paramount importance. Taking financial planning advice is now arguably essential and more important than ever before.
With this in mind click here and complete the CALL BACK SERVICE form. I can help you on every aspect of your investments including minimising tax losses. Act now.
Source: Daily Mail