Analysis and action on living standards
Access to safe, secure and affordable housing is one of the most fundamental measures of living standards. But spiralling house prices, combined with the limited availability of social housing and high costs associated with the private rented sector, mean that for many UK families and individuals, these things remain out of reach.
High interest rates meant that the share of income that mortgage interest costs take up for home owners was higher in the 1980s than it is today. However, including principal repayments into the measure of housing costs – which represent asset accumulation rather than the consumption of housing, but are unavoidable for people entering home ownership today – shifts this picture. The data in this section explores housing-cost-to-income ratios for home owners on these different measures.
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Financial years after 1993 (so 1994 refers to 1994-95). ‘All owners’ excludes principal repayment.
RF analysis of IFS, Households Below Average Income (1961-91); DWP, Family Resources Survey (1994-latest)
Financial years after 1993 (so 1994 refers to 1994-95). Excluding principal repayment.
‘All owners’ excludes principal repayment.
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