Why are so many young people struggling to get on the property ladder?
Dr Steve McCabe explains why the dream of home ownership is unobtainable for many.
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00:00Well, I can summarise it in one word, affordability. I mean, the real difficulty is that sort of,
00:07yeah, look, I mean, the average salaries country is just below 30,000. Now, of course, on the
00:12sort of additional sort of measure of this, three times your salary, as you used to, certainly
00:16when I sort of bought my first house way, way back, yeah, that would buy you a house
00:21at 90,000, plus the fact you'd need a sort of a fairly decent deposit, probably at least
00:265%, albeit the sort of, you know, that may sort of change. The fact is that there is
00:33nothing available, you know, that is the sort of, you know, that would not even buy you
00:36sort of a one bed flat in most areas. Now, I know that, of course, there's no such thing
00:41as a national housing market, because it's made up of sort of pockets. But nonetheless,
00:45the sort of the real difficulty is that sort of, even assuming that you can get some more
00:49than sort of three times your salary, it's really have to stretch yourself. And of course,
00:53sort of the big difficulty we've had in the last couple of years is that we have a sort
00:57of a long period of really low interest rates.