Older generation use extra income to invest in additional properties

on Mar 9, 2015
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Britain’s housing crisis is being sorely tested by a vast amount of older people claiming home-ownership, which is leaving the youth of today with little to invest in. While an increase in house prices has brought wealth to the 77.1 percent of 65-74-year-old homeowners in England, there has been a large decline in younger people owning their own property. Now, the better-off older generation are only making matters worse for the flailing 25-34-year-olds by using this extra income to invest in additional properties, which they then have little trouble being able to let out to fledgling renters.

Across Great Britain, figures from the Chartered Institute of Housing (CIH) have shown that single parents and single people are of the least likely demographic to own their own property. In comparison, couples that have no dependents or are already of pensionable status are more-than-likely to own their own home. Upwards of a third of property-based wealth is within homes that are owned by Britain’s retired generation. For an area that was once based on income and class level, the generational gap of homeowners has now shifted its way to the forefront.

However, there has been a slight revolution within London’s southwest district of Clapham, The Times has revealed in an Editorial published today. Here, 30-year-old, Adam Goff runs his own flat rental company, Capital Living. With 22 rented houses aimed at 21-39-year-olds, it would seem that this is an ideal haven for some of London’s youth. Although, company owner, Goff has his very own selection process for prospective tenants and if you’re not working in a high-end job, securing one of these is almost impossible. While current tenants are young professionals from the areas of law, banking, management and other high-salary jobs, Goff also keeps in place an equal gender divide and doesn’t allow couples to rent out any of the properties. His vision upon starting his company was to create a community that would bring people together, albeit from a very strict selection process. As each of the houses have communal kitchen tables, are sub-let by room and have a single monthly bill per tenant, you could say that his vision is a welcome one. But, only if you meet the criteria.
As it seems, the idea of buying-to-let is currently pushing Britain’s housing crisis to its limits and has pushed the CIH to call on all political parties to set plans in motion for May’s general election to bring an end to it. A plan of action towards all types of housing has been proposed as a main step towards evening out the playing field.

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