The recent report from the institute of fiscal
studies prompted some interesting headlines around the wealth and income of 30
year olds today vs 30 year olds 10 years ago - just before the recession kicked
in.
The study showed by the age of 30 The property
wealth of those born in the 1970's is nearly double that of the property wealth
of people born in the early 80's when they turn 30.
As for incomes - the figures show that those born in
the early 80's do not have higher incomes than their predecessors did at the
same age. This partly reflects the the impact of the recession on the incomes
of working age households, but it is also the result of a period of sluggish
income growth from the early 2000's onwards and the weakness of the recovery in
incomes since the recession. Among those aged between 25 and 55 the real
average income in 2014-15 was only 2% higher than a decade earlier, compared
with an increase of 26% between 1994-95 and 2004-05.
Looking at Melton Mowbray Sold house prices so far
this year - using the data on Rightmove and Land registry - Modern 2 bed semis
are selling for £140,000 and 3 bed semi's built around the 60's (bigger plots
and floor plans generally than a modern home) are going for over £160,000.
With house prices rising (in my opinion this has a
lot to do with the lack of supply) and incomes not keeping up its easy to see
why so many people are renting for longer. This fuels the rent rises as there
are fewer properties available to let and makes it harder for people to save.
It seems to be a continual cycle which can only be broken in my opinion by the
building of more houses. Let's hope 2017 brings a more optimistic housing
market for the young people of Melton Mowbray.
If you are considering purchasing a property to let
please do not hesitate to give me a call for honest opinion on rental returns
in and around Melton Mowbray.
No comments:
Post a Comment