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.