Looking at the impact of housing costs on living standards among different groups, the report shows from the start of the income slowdown in 2002 to 2015:
- Over half of households across the working age population have seen falling or flat living standards – equivalent to almost 11 million households;
- Two-thirds of the growth in average working age income has been wiped out by rising housing costs;
- More than all of the growth in private renter income has been wiped out by rising housing costs; and,
- The same is true for households headed by someone aged 25-44 who will also have seen all of the growth in average income wiped out by rising housing costs.
The report shows that while London is a standout case in terms of how housing costs have dragged down living standards – the share of income spent on housing has risen by almost a third in the capital since the early 2000s – it is wrong to see this as a southern problem. It finds that the North is catching up with the South – Scotland, the North West and the East Midlands have all experienced sharper increases in housing costs as a proportion of income than the South East and South West.
That is from the Resolution Foundation.