11 October 2005
Younger homebuyers are experiencing difficulties in the personal loan and mortgage market, with the unfavourable ratio of mortgage costs to income levels dictating that people under 40 are often being priced out of the market.
Figures compiled for the Joseph Rowntree Foundation have shown that 1.25 million younger households earn too much to claim housing benefit but too little to shell out on a mortgage on even the cheapest properties in their area.
The problem – increasingly forming an "intermediate" housing market – is radically pronounced in the south, where 39 of the 40 most affected areas were located.
The study, carried out by Professor Steve Wilcox of the University of York, was heralded as proof that more money should be made available to those suffering the inequality.
Lord Richard Best, Director of the Joseph Rowntree Foundation, said: "Professor Wilcox's report reveals the sheer scale of the problem. If large numbers of households are not to miss out on the benefits of home ownership, then much greater efforts - and probably much more public money - will be needed to give them a break."
The Joseph Rowntree Federation is a leading social research and development charity, spending around £7 million per year on the investigation of means with which social difficulties may be overcome.
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