A new report from the Institute for Fiscal Studies (IFS) has shed light on the impact of house prices on social mobility in the UK. The findings suggest that rising prices are exacerbating inequality, making it harder for low-income families to own their own homes.
The IFS analysis revealed that the average house price in the UK has risen by over 20% in the past five years, with prices in London and the South East increasing even more rapidly. This has led to a situation where many low-income families are being priced out of the housing market, with the average first-time buyer now required to save for over 20 years to afford a deposit.
The report also found that the Help to Buy scheme, which was introduced in 2013 to help first-time buyers get on the property ladder, has had a limited impact in reducing regional disparities in house prices. In fact, the scheme has been criticised for fuelling demand and driving up prices in areas where they are already high.
According to the IFS, the situation is likely to worsen unless the government takes action to address the issue. The organisation is calling for measures such as increased funding for affordable housing and reforms to the Help to Buy scheme to help make homes more affordable for low-income families.