Analysis and action on living standards
Most developed countries are grappling with a falling birth rate, and the UK is no different. What has driven Britain’s recent baby bust and should it be a cause of concern for policymakers?
Britain’s system of financial regulation became significantly more restrictive in the years after the financial crisis, raising a concern that these changes have unduly locked some households out of homeownership. Since the crisis, the number of mortgagors among low-to-middle income households has fallen by three times as much as it has for those towards the top of the income distribution. But our analysis shows that the most significant barrier facing potential first-time buyers is not income-based lending rules: it is the scale of the deposit required. Almost half of the 8.3 million potential first-time buyers we identify would pass the income requirements for a mortgage on a starter home, but just 15 per cent of them would have enough saved for a 5 per cent deposit.
The Resolution Foundation is an independent think-tank dedicated to lifting living standards in the UK. We focus particularly on households with low and middle incomes; those on low pay or in precarious work; and those vulnerable to financial shocks.
This briefing note examines how being in deep poverty in childhood – proxied by eligibility to free school meals at age 16 – continues to shape graduates’ earnings long after university. Graduates who experienced deep poverty in childhood still face a significant earnings gap after a decade in work post graduation. But even as the OBR’s projections were being published, fast‑moving global events had already begun to make key assumptions out of date.
Conflict in the Middle East has driven oil prices from around $70 to $100 per barrel, with wholesale gas prices also rising by over 60 per cent. Given the Government has said the high cost of living is its number one priority, and has acted to help those reliant on heating oil, there is growing pressure to provide widespread support. So what should be done?
The Resolution Foundation calculates the real Living Wage – a voluntary hourly pay rate that is based on what families need to get by. The current national rate is:
Explore our interactive housing indicators or read about our alternative estimate of UK employment.
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Resolution Ventures exists to back innovative start-ups seeking to change the world of work for the better, and early-stage ventures seeking to improve the prospects of low-to-middle income Britain.
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