For many years in Britain the story was
a young person left their parents’ home, married by 25,
bought a house and started a family.
But the story today is very different.
The number of young people living with their parents
has been on the rise since the turn of the century.
In fact, the number of 20 to 34 year olds living at home
事实上 自2002年以来 20至34岁
has grown by nearly 50 percent since 2002.
The housing system in London
really is a pretty disastrous system for most people
and certainly at least half the population,
they are paying through the nose.
I don’t think that like we’re realistic to think about
how I can save to buy home
and I say change jobs and I can then climb the ladder
So why is it so hard
to get on the London property ladder?
Home ownership hasn’t always been a national obsession.
A century ago three quarters of the UK
rented the place they lived.
Now only about a third of the country’s households are renting.
But those that are have a serious disadvantage
if they ever hope to own.
To understand how we got here,
let’s rewind back to a pivotal part of the country’s history:
the second world war.
The country which was heavily bombed during the conflict
began a period of rebuilding and repairing
between 1945 and 1951.
The government launched an ambitious building program of homes
to rent at controlled prices.
Prime Minister Clement Attlee’s government
built more than one million houses during this period.
By the 1970s,
one out of every four London households
was living in an affordable social rented accommodation,
also known as a council house.
But 1979 changed everything.
To all the British people, howsoever they voted,
may I say this, now that the election is over,
may we get together
and strive to serve and strengthen the country of which we are so proud.
Margaret Thatcher was elected prime minister,
less than a year later she introduced an act
allowing tenants in social housing
to buy their homes from the government,
moving these houses from the public to the private sector.
She also eliminated the rental cap,
which meant prices were vulnerable to the whims of the market
Her policies initially increased home ownership among the working class in London.
But eventually lower and middle income workers began to see
the drawbacks of being thrust into the competitive private housing market.
It became much worse for tenants
but much more attractive for landlords.
And that sector began to grow
and it grew from the mid-1980s right through till now.
Rents which take up 30% or 40% or 50% of their salary,
so they’re not in a position to save the money you need,
to break into the ownership system.
So we have if you like disgruntled people,
but particularly young adults
who are really not being served by this system at all.
This graph shows the relationship between private rentals
and home ownership in London.
When Thatcher took office, private rentals were declining steadily
while home ownership with a mortgage was on the rise.
By the end of her time in 1990,
this changed dramatically.
Private rentals rose
while those owning homes with a mortgage dwindled.
More than 30 years later for the first time in decades,
there were more London households privately renting
than owning a home with a mortgage.
Thatcher also weakened trade unions,
a platform workers used to demand better work conditions and pay.
All she is on about are these high tech…
you know going to college and all this
I’m thick, I’m not a college man.
I’m a labourer and all I want is a labourer’s job.
She took them all away!
She felt these unions were too powerful
and made British companies less competitive on the global stage.
Her plan worked. Well, somewhat.
她的计划奏效了 嗯 有点吧
British firms did become more competitive
but salary growth across the country declined
from about 17% in 1979 to just over 10% in 1990
and it has continued to decline today.
In London, the average house price in the 1980s
was something like 3 or 4 times the average salary
but now in London, it’s something like 13 times the average salary.
Jonathan Oomen is a 30-year-old Londoner
who has felt the sting of high rents and low salaries.
Buying a home seems very far out of his reach.
If I’m attempting to save,
it’s like straight away as soon as the paycheck comes in
it’s going into savings.
By the end of the month you’re thinking right okay
and I’ve gotta need to like take another 50 quid back out or another 100 quid out
just to get through
so it’s kind of demoralizing I suppose,
but if I wasn’t to leave London
I don’t imagine that I would even consider the idea of
at this stage of my life of like thinking to like save for that.
The financial crisis in 2007 and the bursting of the US bubble
marked another turning point in London’s property market.
the housing borrowing in London system collapse
because low quality debts had been bundled and sold as securities
on the global markets by banks
as though it was reliable
but it wasn’t.
The crisis triggered in North America was so bad in the UK,
that the country’s finance minister at the time said
there was a danger of a breakdown in law and order,
hours after the government bailed out one of its troubled banks.
The British government devised a rescue plan
that involved buying some of this bad debt
in exchange for stakes in these banks.
By 2011, London had bounced back faster
than many other cities in the country and around the world.
Many of us in London had expected at the time of the financial crisis
that the economy of London would really suffer
because it was so dependent on this financial sector
and the financial sector had really behaved so badly
we thought a lot of it will shrink here
but because of the generosity and scale of this government rescue of the banking system
actually London did very well.
The rebound cemented the capital as a stable market for investments
and attracted several real estate buyers.
These investors bought up several homes in the city
either for rental income or for its resale value as house prices appreciated.
Another thing attracting investors?
Paying less on property taxes.
In New York for example,
if you own an luxurious apartment in expensive district in Manhattan
you can be paying thousands and thousands of dollars a year in property tax
quite a significant percentage of its value
which is not the case here.
The most you can have to pay in London in annual property tax
is in the range of two or three thousand pounds a year.
Some of the most attractive areas to these investors
are the boroughs of Westminster,
and Kensington and Chelsea in West London,
where rows of investment houses lie vacant.
It’s not very transparent
but it’s pretty clear that investing in London housing
has been very attractive to investors.
The government has tried to make housing more accessible
to lower and middle-income earners.
In 2016 for example,
the government rolled out an additional three percent tax
for home owners with more than one property.
this wasn’t top of existing stamp duty land tax.
The idea here was to make the property market more accessible
for individuals and families rather than investors.
Perhaps the government’s most successful policy
has been the Help to Buy Scheme set up in 2013.
This scheme allows first-time buyers of newly built homes in London
to borrow up to 40% of the purchase price
in the form of an equity loan,
if they can pay a 5% deposit.
Traditional mortgages usually require at least 10%.
So for example,
if a buyer wanted a flat in London that cost £500,000,
she would have to pay a £25,000 deposit.
Under the scheme, the government could loan this buyer
up to £200,000, interest free for five years.
The rest £275,000
would have to be borrowed from elsewhere like a bank.
The scheme has been popular.
About 330,000 households
have bought homes through the scheme since 2013.
But some experts including Professor Edwards
have observed drawbacks to the scheme as well.
There were some pluses for the people it was aimed at
but because it was operating across the country and across the markets
it also seems to have pushed prices up
For young people like Jonathan,
the hardest part of buying a home is saving the initial deposit,
a problem the Help to Buy scheme doesn’t completely solve.
His solution to becoming financially secure?
I’d consider leaving London and moving to another city,
where I could earn a bit more money
where things are still cheaper so rent could be cheaper
or I have friends there that I can stay with
perhaps for a short amount of time
just to get me back on my feet.
For many years in Britain the story was