Tuesday, 30 August 2011

Property: a tale of two countries

If there is any hallmark of the divided nature of our country in the present day, it is in property.

Whilst property owners benefit from rock-bottom interest rates, and a wealthy minority make a small fortune from so-called property investment - which in fact is little more than the accumulation of mulitple houses - a generation of young people are faced with a stark reality: unless you have a very high paid job indeed, you will need to borrow off the bank of mum and dad or face the fact that owning your own home won't happen.

Recent reports of banks requesting deposits of in excess of 30% for first-time buyers, coupled with sky-high prices are contributing to the reversal of years of increases in home ownership.

Today's report that house ownership is slipping back to levels not seen since the 1980's is in this climate unsurprising.

And yet the government does nothing to help, working as it does to defend the interests of the already wealthy. 

The question is this: at what stage will the locked out become a constituency powerful enough to create poltical change in this area?

Until then, it's property investment programmes on Channel 4 and buy-to-let schemes for some, and years of renting at increasingly high prices for others.

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