House prices continue to outpace wages. Hot on the heels of Mark Carney's interview with Sky News and David Cameron's interview on this morning's Today Programme, the Office for National Statistics published its House Price Index, which confirmed that there’s no let-up for first time buyers, who are facing double-digit inflation and stagnant wages.
Shared ownership is touted in some quarters as the answer to the housing crisis, but, as Harriet Meyer’s piece in yesterday’s Observer finds, existing schemes don’t seem to help anyone who needs it.
The idea is that people who can’t afford the full price of a house can buy, say, a quarter of it and rent the rest, which is typically cheaper than renting 100% and also lets them build up an asset. It was designed with “key workers” in mind – those public servants like nurses or teachers who have to spend their careers in areas that are not affordable on a modest salary.