Commission on Living Standards

Resolution Foundation

In 1988, 58 percent of young people in the low to middle income group owned a home and 14 percent rented privately. By 2008, those figures had flipped to 29 percent and 41 percent (respectively). This change took place in spite of a dramatic loosening of credit. In 2007-08, just prior to the financial crisis, 30 percent of people on low to middle incomes buying their first home relied on 100 percent mortgages, a higher proportion than in the income groups either above or below. Despite falling interest rates, the burden of mortgage repayments on people on low to middle incomes has been rising, not falling over time.

Housing tenure among low-to-middle income households with heads aged under-35

Housing tenure among low-to-middle income households with heads aged under-35

Source and notes: RF analysis of DWP, Family Resources Survey (various);
RF analysis of ONS, Family Expenditure Survey (various); The data split for rented properties in 1978 differs from that provided in subsequent survey years. Therefore, all rented data is grouped together in this year.

Read more about these issues in the reports to the Commission on Living Standards