Why zero deposit mortgages will make the gap between rich and poor worse

A common opinion in today’s media is that millennials have it all – flexibility in jobs, a greater freedom to travel, and all the information they need at their fingertips. However, if you dive a bit deeper into the statistics, things don’t appear to be as rosy as we first thought. Today’s young face longer commutes than those before them and are confronted by an increasingly out of reach property sector. Over the last 20 years we’ve seen nothing short of a collapse in homeownership amongst younger people. In 1995-96, sixty five percent of those with incomes in the middle twenty percent for their age owned their own home. In 2015-16 the figure stood at twenty seven percent.

Those looking for a reason as to why won’t have to search hard. In the UK, house prices have risen by more than two hundred and fifty percent since 2000, far outpacing any increase in wages, which grew by just sixty eight percent across the same period.