Life got better for most people around the world in the 1950s. Back then, at least buying a house was easy, but now it can be more than just difficult, but almost impossible.
The British newspaper “The Guardian” made a comparison between the generation born in the year 2000, or the so-called “Z” generation, and the generation of the fifties of the last century.
Emily, 72, left school after receiving ‘A-levels’ in education, joined a local accountancy firm as a clerical assistant, paid for her accountancy qualifications while working, then married at 23 and her first home bought for £12,000. Together with her partner and today she and her husband have paid off their £600,000 home mortgage and have a healthy savings pot and a combined income of £50,000 from their pension.
On the other hand, Emma is 27 years old, she also wanted to be an accountant, so she went to college to get a degree in business, and got her first accountant apprenticeship at the age of 22 and she wears tax, pays 9% of her income Above the £20,000 threshold to pay off her student loan, and given the interest rates on her loan, she expects to do so until her early fifties, and she spends more than half of her income from renting a room in a shared house, but would like to buy a one-bedroom apartment With her partner for the next few years, but she has no savings or parents to help them between rent and student loan payments.
According to the newspaper, Emma’s situation in 2022 is not good, and it is also gradually getting worse. In 2037, she will be able to rent a two-bedroom apartment without a garden, but it will be a difficult life with two children under the age of ten, and she and her husband will continue to spend most of their income on rent.
Ten years later they had to move for their children’s schools or because landlords raised rents, and they are still in a small apartment worried about retirement in 20 years, they don’t have ugly savings and pensions and they don’t know how to continue paying rent once they stop working.
What is the difference between fifties and millennials?
The newspaper emphasized that Emily and Emma are fictional people, but they are good examples of what is happening, the main difference between them is that Emily was born in 1950, and Emma in 1995, during the 45 years between the two life has improved a lot in terms of life expectancy and the inequality between the sexes has decreased. Better educational outcomes, more international travel, and the benefits of technology.
But there is a gap between their respective abilities to achieve a decent and safe home for themselves and their families. Often when we talk about moving up the housing ladder as a financial advantage and of course those in Emily’s generation are baby boomers what they bought. homes and have now made significant financial gains from the high house prices, with no With any solutions on the horizon for this crisis, older homeowners are more, so any adjustments to rental house prices will be out of the question.
She added that buying a home now is the only way to ensure security during the life stages that still await Generation Z in 2022. It’s a shame to be renting in your mid-twenties in 2022, given the way rents have risen in the past two years; With tenants paying the highest rents in Europe even a few years ago, spending 36% of their income on housing compared to 12% for beleaguered landlords; And the awful condition of many of the exhibits and the fact that you have no idea where you’ll be living once the lease is up.
The paper pointed out that young people have a permanent nightmare of being subject to the whims of the landlord and substandard housing, around a quarter of the homes rented to the private sector do not meet the standards of decent homes, when you young children do not. , you worry about when the next step is, how far you will have to move from one city to another. Transfer kids to a new school and make new friends.
Reasons why it is difficult for young people to own private homes
The cruelty, she added, is the approaching retirement age. When it comes to state and private pensions that are simply not designed for people who haven’t already paid off their mortgage or who don’t have the long-term security and controlled rent. of social housing, it is a nightmare.
The paper pointed out that despite the great importance of having housing and that it is a necessary thing for life, the stock of ownership of residential units has declined sharply in recent years, meaning that the new generation does not have a house will be able to own in the near future.
She added that a whole generation of young people in their twenties and thirties will now never own a home, and their only option will be to rent from the original owner, with the private property sector swelling to absorb such a crisis , as it doubled. in size in just a decade.
It is one of a number of looming social crises that political leaders in the West have refused to deal with, in part because of politics. Any solution to this would effectively redistribute among the owners, who are more and more likely to vote as the But this is also due to the economy, growth in the UK economy has been largely driven by consumer spending supported by the housing bubble and not sufficiently by business investment and exports do not.