Page 39 - Londra Gazete Sayı 1108

2 LondraGazete.com/English Londra Gazete, 02 June 2022

Young people lose hope of home ownership in London

cal regulations, tax incentives, the homeowners, support a fairer housing
right to buy and the unregulated approach that seeks to fix prices rath-
EXCULISIVE private rental market. The report er than allow them to inflate forever.
proposes higher taxation on invest- From fairer taxation to a massive new
ment properties to keep house pric- social housing program to a better reg-
es stable and lower the long-term ulated private rental industry, there
home price-to-income ratio, and to are ideas, we just need political will to
develop alternatives to home own- get this done. The failure of my genera-
ership by increasing the supply of tion to step on the property ladder has
affordable housing and regulating been the subject of both sympathy and
private rental. ridicule for years... However, banks
This week Londra Gazete evaluat- tightened their loan commitments to
ed the situation with young adults reduce risk. They've also doubled down
from our community. on the 20 percent down payment rule
for home buyers. But as prices rise, Aymen Hüseyin
RAMADAN ARCIN millennials take longer to save enough
“Governments have been unable to cash to fund a home.” at a place like the north of England or
deal with the housing crisis because of Scotland, it takes close to 6 years to ac-
a widespread view that the majority of AYMEN HUSEYIN cumulate this deposit.
homeowners will oppose policies that “As a generation battered by social
A new study has found that peo- this age range has fallen over the
BELGIN MEHMET
ple aged 26 to 42 are buying fewer past five years. restrict housing price growth. However, mobility and the pandemic, it is getting “London is among the most expen-
it is argued that most people, including harder and harder to own a home...
homes than ever before, account- The UK Housing Review for 2022 While the cost of living affects every- sive cities in the world, which is why
ing for just a quarter of real estate notes that more discussion is need- one, salaries remain constant. In this investing in London is just as expen-
transactions in 2021. Data analyt- ed about high house prices, stating case, the younger generations do not sive... While everyone's dream is to
ics firm Outra has found that the that “the housing market used to have a chance to save much, because own a house, the 'Buy to rent' option
proportion of homebuyers in this sprawl wealth but is now a powerful the expenses are increasing. It is very, as a new alternative has started to be-
age group has dropped 11% in five engine for inequality driven by high- very difficult to put together the types come more attractive. You can buy and
years. In addition, Outra found that er prices, with many households un- of deposits required to buy a house. rent a house for an affordable price in
the average price paid by millennials able to access home ownership.” Deposits in London are now such that any city outside of London for the price
last year was £239,000, below the The report debunks the wide- most young people will not be able to you will pay for an apartment in Lon-
national average of £270,000. spread narrative that high house earn that kind of money for years, in don. Invest outside of London, living in
In an economy focused on home prices are the result of low housing their lifetimes. In London, for exam- London. But now everyone has a debt,
ownership as a major source of fi- construction, instead blaming the ple, if you had saved 15 percent of your cost of living, energy bills and struggle
nancial security, it's significant that conversion of houses into financial income, it would take 16 years to accu- to survive, how are we going to own a
the proportion of homebuyers in assets through the relaxation of fis- Ramadan Arkın mulate a 20 percent deposit. If we look house?”