Housing costs have almost trebled for the poorest Brits over the past 40 years, report warns

HOUSING costs have almost trebled for the poorest Brits over the last 40 years causing spiralling inequality across the country, a bombshell report warns today.

Low income families now spend a staggering 40% of their income on putting a roof over their heads and have suffered a £1,200 a year hit to living standards since 2002.

Rising property and rental prices have meant that 90% of their wage rises over the past two decades have been eaten up by soaring accommodation costs.

The report, from the Resolution Foundation think tank, reveals that just 28% of 25-34-year-olds own their own homes – almost half the rate in 1989.

But in contrast wealthy families who already have property are now £400 a year better off thanks to falling interest rates during that period.

The report says: “Recent trends in housing costs have acted to push up inequality in the UK.”

In it think tank chiefs urge political parties to recognise in their election pledges that tackling the housing crisis requires action to help lower-income families.

PROPERTY LADDER STRUGGLE

It says that in 1980, the average family across the UK spent just 10p of every £1 of income on housing - but this has now doubled to 20p.

But for the poorest families that has gone up from 15p of every £1 of income to 40p in every £1.

The research, titled Inequality Street, also highlighted the struggle to get on the property ladder for younger generations.

High house prices relative to family incomes mean it will remain harder for young families to save a deposit big enough to get on the housing ladder, the think-tank said.

Daniel Tomlinson, research and policy analyst at the Resolution Foundation, said: "In this election, politicians know that housing is an issue close to many people's hearts.

"Young people in particular, many locked out of buying their own home, may welcome proposals to build more in high demand areas.

"But political parties also need to address the legacy left from 40 years of higher housing costs.

"As incomes have not risen at anywhere near the same pace as housing costs, families have dedicated a greater share of their income to housing."

He said that, as the burden has landed most heavily on low-income families, "we also need political parties that are serious about lowering the cost of a roof over your head for lower-income Britain".

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