The dream of owning even the cheapest local homes is now out of reach for 40% of young adults, according to new research. Figures published by the Institute for Fiscal Studies (IFS) highlight the growing problem of rising house prices and stagnating wages for many young people. According to the IFS, as long as they had a 10% deposit, in 1996 more than 90% of 25-to-34-year-olds would have been able to purchase a house in their area if they borrowed 4½ times their salary. But by 2016, even with a 10% deposit, only around 60% of young adults would have been able to borrow enough to buy even one of the cheapest homes in their area. And in London the figures are even more stark as only one-in-three young adults could borrow enough to purchase one of the cheapest homes in their local area. Back in 1996, if they had … (To read the full article, subscribe below)

Jamie Hailstone

Senior reporter – NewStart