A recent study by Birmingham Midshires revealed that most homeowners do not pay off their mortgage until they are in the 50s. The average age for people to complete their mortgage and find financial freedom is age 55.
House prices in London are placing a strain on parents, as 33 per cent of parents, aged 50 or over, are likely to still have children living at home, this compares with just 15 per cent in the south as a whole. The view is that by staying at home, youngsters will be able to save more and buy their own property more quickly.
Our view
Property price increases have outstripped earnings growth over the last 10 years or so putting property out of reach of many. This generally happens every 20 years or so and means we are heading for a slow down whilst earnings catch up. In the meantime, people with continue to save and invest money in home improvement to better their position when they can afford to buy or move up.
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