With rising house prices and declining wages, young adults in Britain have now largely given up on the idea of owning their own homes. From the Independent:
A generation of young British adults is close to giving up hope of ever owning their own place to live. A startling new survey reveals that while the great majority of young Britons from “Generation Rent” would like to become homeowners, most believe they will be unable to raise the mortgage they require to get on to the property ladder…..
The online survey of 8,000 Britons aged 20 to 45 by the polling company Populus, which the Halifax drew on, found that more than three-quarters who do not own property would like to, but 64 per cent believe that their prospects of ever buying their own home are nil. The survey also found that 84 per cent of first-time buyers were put off by a belief that the banks do not want to lend to them and would find excuses to say no, while 67 per cent thought there was little point in applying at all because of the probability that they would be turned down.
The housing bubble has created an enormous problem for future generations – they have literally been shut out of the market and will now struggle to build long term wealth. They will spend a life time paying down the mortgages the rich who will pass their houses down to their own offspring, keeping wealth in the hands of a class based minority.
It is no wonder the next generation are skeptical of buying their own property – the prospect of a lifetime of debt isn’t exactly appealing and with a highly unstable job market, it represents a highly risky proposition. This is of course deliberate, a continuation of Thatcherite economics that seeks to create a permanent economic underclass incapable of escaping the rat race. We were told it would be an ‘ownership society’, the secret being that it would be us who would be owned, and not the houses we lived in.
Ben Cohen is the editor and founder of The Daily Banter. He lives in Washington DC where he does podcasts, teaches Martial Arts, and tries to be a good father. He would be extremely disturbed if you took him too seriously.