Finding a place to call yourself is a sign of independence, as well as a way to start a family. However, for many young people, in many lands, housing has become cheaper and the rent is safer, cheaper, or both – especially in areas where the good jobs they want are plentiful.
Home buyers have long enjoyed the benefits of tax-free approvals, free taxpayers, and in the UK, the right to reimburse. In the meantime, unless they get help from “bank of mum and dad” or if they get a lot of money, most young people are like “generation rental“.
This is one of the differences between the many generations that plagues income groups today. These include unemployment, the mountains of student debt, insecure pensions, social instability, above all, climate change. The Financial Times believes that now is the time for policymakers to offer a new deal to young people, whose financial hopes have been dashed during the epidemic. A number of articles this week will look at housing, pensions, employment, education, climate and taxes, and how they can be adapted to help young people.
When FT surveyed young people, respondents from Hong Kong to Shanghai and London said house prices were one of the biggest problems. To take the UK as a survey, home buying has been very expensive according to the old standards relating to benefits, especially in London. Population in England aged 35 to 44 in rented facilities jumped from 9 to 28 percent between 1997 and 2017.
While the total number of houses was 325,000 per annum from 1950 to 1970 inclusive, in addition, this fell to more than 180,000 from 1990 to 2019. There has also been a significant decrease in the availability of accommodation. Most of the shares were sold under “buy rights”, while the new home collapsed dramatically. In February 2017, he was Prime Minister Theresa May warned that “our broken housing market is one of the biggest obstacles to progress in Britain today”. They may be talking about many other countries.
The high corporate prices are due to the temporary decline in real interest rates. But the answer would not be to raise interest rates immediately, so that house prices could fall, despite unemployment and output.
FT Series: New Youth Work
What would make a successful economic career for today’s youth? FT writers have made a case for ideas that could change housing, pensions, jobs, education and the environment for several generations on a number of ideas the week of April 26-30.
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Property taxes are not the same, especially in the UK: council property tax rates are higher for owners of cheaper items than cheaper ones. In addition, the calculation has not changed in England since 1991. The change is important: this should include taxes based on the value of the property, adjusted calculations and tax evasion for the elderly, and the amount paid on the site.
However the most important problem is the underdevelopment of the population, including affordable housing. To address this, governments, especially local governments, need to have the space to make improvements at a cost determined by existing plans.
Local authorities should also determine the amount of price increases based on changes in the approvals. This would provide them with an incentive to help advance development and benefit existing citizens.
There is a big issue in paying taxes on the property, not the house. But this will be a very important incentive in the field of unused permits. Nothing can drive development more vigorously than such a tax.
A large part of the new economy that governments can afford should also be used to build affordable housing for low-income people. Great integration, in particular, would not work without such.
Finally, the private sector will be an integral part of the business. But long-term tenants need adequate protection: lease agreements must last for three years.
Housing is a complex, complex issue. But in many countries, especially in the UK, greater access is essential, especially in the economic sphere. This will lead to a major change in legislation. It’s time to dump her and move on.
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Some notes and these pieces can be found at ft.com/newdeal