The gap between buyers and renters increases
The gap between property owners and people who are locked into renting is increasing.
With the average house price in the UK being £178,000 and lending regulators being told to be stricter in who they give 4x and 5x mortgages to, it is increasingly hard for first time buyers to get on the bottom rung of the property ladder. Predictions are that more and more people will either working overtime to make huge mortgage payments or stay locked into paying rent.
With certain lenders now not wanting to give mortgages of more than 3xwages and increasing interest rates there is a predicted crisis with less and less people able to buy property.
What is next? What can be done to stop this process?
Information from Aberdeen and Loughborough Universities