Britain’s property prices are still soaring and in London the average price for buying a place now is way over £500,000.
Many people looking to buy a home in Britain’s capital city just can’t afford it and are renting for the long term. It’s one of the only options, unless you have money given to you by family members.
Barclays released an epic research note this week, which includes 180 charts, all about Britain’s housing market.
But nestled in the middle are some very pertinent charts that demonstrate just how difficult it is for young Londoners looking to buy a place.
Take a look at this chart. It shows how much rent has soared since the onset of the credit crisis:
When compared to the rest of the UK, you can see why it is a bitter pill to swallow for people looking to get on the housing ladder by buying their own home:
And this is the effect it is having on the younger generation:
In other words, rent is increasing, ownership is decreasing and wages, which only average around £30,000 in London, are just simply not increasing enough to keep up with rising prices.
So, unless the younger generation have parents or family members that can help them out, it looks like they are going to be known as Generation Rent for the foreseeable future.