Blog & Articles

Shared ownership can put a roof over the head of Generation Rent

Date: 22. November 2013
Vidhya Alakeson

With house prices out of reach for many, shared ownership could be the next big thing – but only if it makes some serious change.The gap between renting and owning with a conventional mortgage, even a high loan-to-value mortgage, has become unbridgeable for low and modest income families in some parts of the country, not just London.

Take Cambridge as an example. A couple with one child with a net income of £22,000 would have to spend 85% of their income on monthly mortgage payments if they had a 95% mortgage on a two-bedroom property. While the barriers to ownership are high, the aspiration to own remains strong, and there are good reasons to promote ownership, not least the fact that welfare spending on housing benefit and pensions will rise dramatically if large numbers enter retirement and still have to pay rent. Shared ownership can act as a bridge to home ownership for those on lower incomes, but to meet the needs of millions not a few hundred thousand, the product would need to change and be massively scaled up.

read more

Building homes for ‘generation rent’

Date: 14. October 2013
Vidhya Alakeson

The private rented sector is fast becoming the only housing option for low-to-middle-income families. Even with Help to Buy, home-ownership is too great a stretch for many, especially in expensive areas, and they are very unlikely to get access to affordable housing. We need to increase the supply of market rented homes as well as providing a different product that offers greater security, is more affordable and better managed to meet the needs of long-term tenants and the growing number of families with children who are making their home in the private rented sector.

read more

terraced housing

Homeownership: the preserve of the rich?

Date: 25. January 2012
Joe Coward and

This post originally appeared on Mortgage Solutions

One of the most striking findings of our Squeezed Britain report, which sets out the economic position of the squeezed middle in forensic detail, is that home ownership is now out of reach for many people on low to middle incomes (LMI).

On the basis of current incomes, house prices and the loan-to-value ratios now available, it would take a first-time buyer on a low to middle income 22 years to save for a deposit compared to three to five years in the 1980s and 1990s.

read more


‘Generation rent’ needs a helping hand

Date: 1. September 2011
Vidhya Alakeson and

This blog originally appeared on Public Finance

Yesterday’s report from the National Housing Federation predicted that by 2021 home ownership in Britain will have fallen to its lowest levels since the mid 1980s. 64 per cent of people will own a home compared to a peak of 73 percent ten years ago.

The government’s response to these predictions was half right. The minister for housing, Grant Shapps, talked about the need to build more homes. This would of course help address the chronic undersupply of housing, with the number of new homes being built at a post-war low. But it was also half wrong by continuing to focus exclusively on meeting people’s aspiration to own and ignoring the potential for the private rented sector.

read more


Making a Rented House a Home

Date: 8. August 2011
Vidhya Alakeson and

Published today, the Resolution Foundation’s Making a Rented House a Home outlines the shocking fact that the average low to middle income household buying a home today would have taken 31 years to save for a deposit , compared to 8 years in 1983. Last week a report by the estate agents, Savills, revealed that for the first time in Britain’s post-war history, more people are becoming tenants than home owners. We are witnessing a major transformation in our housing market that will see Britain become more like Germany and Switzerland where more than half the population rent rather than own a home.

read more

Share this


Rss Feed


Tag Cloud

Gavin Kelly Resolution Foundation living standards childcare James Plunkett Housing wages inflation tax credits Squeezed Middle tax Vidhya Alakeson coalition inequality Matthew Whittaker minimum wage new statesman Debt Spending Review female employment growth low pay Squeezed Britain Universal Credit autumn statement Labour USA welfare women work incentives Budget 2012 employment generation rent giselle cory household income IFS institutional investment interest rates labour market living wage low to middle income politics recovery social mobility affordability Audit budget 2011 cameron Commission on Living Standards distribution earnings economy Ed Miliband education fiscal choices household debt living low pay commission older workers skills social care spending round sr2013 unemployment zero hours Affordable Housing America bank of england budget child benefit child poverty cost of living David Cameron debt target degree Guardian income jared bernstein joe coward lee savage Lib Dems living costs measuring poverty middle class mortgages Obama pay poverty recession tax cuts uk 10p arrears benefits borrowing Commission cpi cuts david willetts debt forgivenes dilnot Donald Hirsch fiscal forbearance gearing George Osborne great stagnation household housing market huffington post income tax ippr Ipsos MORI jobs gap lane kenworthy Low earners matthew pennycook monetary policy Nick Clegg pension Pensions personal allowance personal allowances polarisation precarious work prices prospect q2 growth regional renting rpi shared ownership social housing social mobility foundation Sophia Parker standards sutton trust tax changes tax relief think tank think-tank underemployment Wage squeeze 2013 Work working poor zero hours contract 'Annual Survey of Hours and Earnings' 'earnings squeeze' 'squeeze' 'wage stagnation' #ows £10000 2011 2012 50p 99% a matter of time Alan Johnson Alex Hurrell allowance andrew haldane Anna Vignoles apprenticeships ASHE assets Australia below minimum wage benefit freezes borgen Boris Johnson budget 2013 cap care assistant centreforum chancellor childcar choices CiF citizens UK Coalition politics Conor D'Arcy conservatives contracts Cost of Motherhood costs council tax council tax benefit CPIH daniel chandler datablog de-coupling debt peril deficit department for education dependency election election 2015 enforcement equity release family felicity dennistoun Financial Times first-time buyers food prices full employment gap GDP gender gingerbread good life gregg growth without gain HELP Committee higher rate higher rate tax relief hmrc holmes homeownership hourglass household finances household spending illegal in work income inequality incomes increase Independent indignados international jobs John Van Reenen jrf Labour Party Left Foot Forward liberal democrats living wage foundation LMIs low middle earners Low Pay Britain low pay threshold low to middle income earners low wage low wage work machin marginal tax rate marriage tax allowance matt whittaker matthew hancock mayhew median real wage median wage Mervyn King Middle Britain miminum wage minimum income standards missing out mobility Montague mortgage market mothers national minimum wage netmums new statesman blog new year newby newham niesr nil hours number paid below minimum wage nursery world OBR occupy occupy wall street OECD older ons over 50s paul gregg pay and pensions pay progression pensions relief personal personal finance pledge cards policy politicans poll population precarious employment predistribution prescription charges priorities private rented private rented sector private sector growth progression prs public sector public services public spending ratios reduce credit card reform Regions Rented Sector resolution foudnation retirement robin wales robots routine jobs RPIJ rss savings self-employment Senate shared shereen hussein social society southern cross spending cuts squeezed state state pension age statistics steve machin tax and benefit changes tax and benefits Tax Benefits technology The Spirit Level threshold tories travel time Treasury trends unison university US election van reenen VAT voters voting wage wage growth wage inequality Welfare Debate welfare state White Paper workers Working part time lower skilled job young people Youth unemployment youth wages zero-hours