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 that the property wealth of those born in the 1970's was nearly double that of the property wealth of people born in the early 80's when they reached the age of 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 impact of the recession on the incomes of working age households. It is also the result of a period of sluggish income growth from the early 2000's onward and the weakness of the recovery in incomes since the recession. For 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.
When looking at Bingham sold house prices so far this year - using the data on Rightmove and the Land Registry - Modern 2 bed semis are selling for £170,000 and 3 bed family homes are going for over £200,000.
With house prices rising (I believe this has a lot to do with the lack of supply) and incomes not keeping up it's easy to see why so many people are renting for longer. This fuels rent increases as there are fewer properties available to let and this in turn makes it harder for people to save. It does 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 Bingham.
If you are considering purchasing a property to let please do give me a call for an honest opinion on rental returns in and around Bingham.