Housing costs choke economic recovery
The research, which showed the cost of housing risks choking off Britain’s economic recovery, comes after official figures were released last week showing that the UK economy grew by 0.6% in the three months to June.
CIH chief executive Grainia Long said: “It’s no secret that wages have failed to keep up with the high cost of renting or buying a home. People of all ages are struggling to secure a decent home at a price they can afford because there simply aren’t enough homes to go around.”
Of those with monthly rent or mortgage payments in the survey of adults aged 16-75, 53% said the money they spend on their rent or mortgage limited the amount of money they had to spend on other things either a great deal or a fair amount.
That figure is even higher for private renters with 62% saying their housing costs limit their spending compared with 51% of people with a mortgage and 53% who rent their home from a housing association or local authority.
The survey also found that 58% of people aged 25-34, 57% of people aged 35-44 and 58% of 45-54s have to limit what they spend elsewhere because of the money they spend on housing.
Long said: “The cost of housing is causing millions of people real hardship and stress and it is holding our economy back. GDP growth won’t get any better if this situations persists. If the government wants to tackle this crisis it needs to invest in housing across all tenures not just home ownership.”