Numbers of young tenants at a high
The continued rise in the cost of buying a home is pushing more and more young people to the Private Rented Sector (PRS) than ever before, according to newly published official figures.
The Office for National Statistics (ONS) in its latest report on the housing sector states that only 9% of people aged between 20 and 24 owned their own home as of 2015. This figure is significantly lower than it was just twenty years ago, in 1996 as many as 30 per cent of people in this age group owned their own home.
One of the main reasons for this is the fact that it has become more difficult than ever to save for a mortgage, the deposit required is now at a alot higher level than just a few years ago. Interest rates remain low and the government help-to-buy scheme is assisting younger first time buyers to get their foot on the property ladder, but it does not appear to be enough.
Mark Carney the Governor of the Bank of England said yesterday that the central bank might cut interest rates to zero but will not drag rates into negative territory.
Speaking to the Treasury committee he said if the economy needed additional stimulus there were many things the bank could do, including cutting interest rates to zero, from the current 0.5 per cent rate, or buying more assets though QE.
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