Over-55s wealth increases as young buyers struggle on property ladder
The over-55s are in a better financial position then their younger, new research reveals.
According to a study by the Bank of England those in the age group, have seen their wealth treble to a record £150,000 due to a rise in property prices over the past ten years, reports the Daily Mail.
However, those under the age of 34 have been reported to be getting poorer as they find themselves taking out increasingly larger secured personal loans as they struggle to get on the property market.
The report stated: "A decline in homeownership rates among 25-to-34-year-olds likely explains why that group’s median net financial wealth plus housing assets and median indebtedness fell between 2000 and 2005."
Meanwhile, ever-increasing property prices were reported to have led the majority of potential first-time buyers to look for financial aid for help with the cost of a deposit or loan repayments.
According to a study by the Council of Mortgage Lenders, an increasing number of first-time buyers are opting for fixed-rate mortgages due to fears future interest rate rises could impact on the costs of homeowner loans.
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