A new report from think tank the Resolution Foundation has warned that low to middle-income households are unlikely to see their disposable income reach pre-recession levels for almost a decade, which could add to the squeeze placed on homeowners struggling with their finances. According to the Squeezed Britain study, those who do not currently own a home could face a wait of up to 22 years before they become property buyers for the first time.
The document also examined the declining options on the property ladder for people in this situation, who account for 5.8 million households in the UK. Home ownership is a distant dream for many people because of rising prices and bigger deposits needed for mortgages, while wages have remained flat.
“With limited mortgage availability for first-time buyers, historically high house prices and stagnant wages, many in this group are finding themselves stuck in private rented accommodation,” said the report. Job insecurity and low pay are also a contributing factor, particularly in the south-east and north-west of the country.
