Decisive report illustrates the struggle for early-1980s millennials
Thanks to the ever-increasing gap between wages and housing costs, those born in the early 1980s have been proven to be at a severe disadvantage with regard to buying a home and ultimately retiring with a comfortable pension.
While certain members of the older generations still maintain the notion that millennials are lazy, and their state of desperation is due to a lack of work ethic, a damning report released by the Institute for Fiscal Studies has painted an entirely different picture.
With a focus on millennials born in the early 1980s, the research has determined that they are half as wealthy as those born ten years previously – enjoying a wealth of £27,000 versus £53,000 for those born in the 1970s.
The report also revealed that those in the 30-something generation missed the opportunity to benefit from huge house price increases and better pensions; as well as being the first generation to not enjoy higher earnings than those who came before.
With much lower home ownership levels thanks to rising rental payments and stagnating wage increases, many property selling experts are beginning to wonder what effect this will have on the market when those older generations who already own begin to look at downsizing. Who will they sell to if no one can afford their asking price?
Those who are currently looking to sell fast are already finding it harder to locate potential buyers who have the necessary funds available, causing many to repeatedly lower their asking prices. Of course there are always secure property buyers who buy any house for cash regardless of market conditions, allowing a boost of mobility for vendors who can’t afford to wait around.
“With sky-high house prices so out of step with average wages, it’s no wonder a whole generation are being priced out of a home of their own and left with no choice but expensive, unstable private renting,” said Campbell Robb, CEO of housing charity Shelter.
“At Shelter we see the impact of our chronic shortage of affordable homes every day, with thousands of people forking out most of their income on rent and left living from one pay cheque to the next.”
Analysts are also looking towards the future when millennials begin to retire – as reduced wealth and an inability to purchase a home will ultimately put more pressure on the state to support them in their old age. And with the situation due to get worse with proceeding generations, it’s an issue that won’t be going away anytime soon.
Can’t find a buyer? Why not ask National Homebuyers for advice, as we buy any house. Call 08000 443 911 or request a call back to find out how much you could get for your property.