Why are so many young people struggling to get on the property ladder?

Dr Steve McCabe explains why the dream of home ownership is unobtainable for many.

Transcript

00:00Well, I can summarise it in one word, affordability. I mean, the real difficulty is that sort of,

00:07yeah, look, I mean, the average salaries country is just below 30,000. Now, of course, on the

00:12sort of additional sort of measure of this, three times your salary, as you used to, certainly

00:16when I sort of bought my first house way, way back, yeah, that would buy you a house

00:21at 90,000, plus the fact you'd need a sort of a fairly decent deposit, probably at least

00:265%, albeit the sort of, you know, that may sort of change. The fact is that there is

00:33nothing available, you know, that is the sort of, you know, that would not even buy you

00:36sort of a one bed flat in most areas. Now, I know that, of course, there's no such thing

00:41as a national housing market, because it's made up of sort of pockets. But nonetheless,

00:45the sort of the real difficulty is that sort of, even assuming that you can get some more

00:49than sort of three times your salary, it's really have to stretch yourself. And of course,

00:53sort of the big difficulty we've had in the last couple of years is that we have a sort

00:57of a long period of really low interest rates.