Debt Forces The Middle Class To Humble Themselves
As house prices continue to scale upwards, the middle class are faced with two options, debt from an over-inflated mortgage or a council house.
London Borough Council has been flooded with applications for social housing as families seek accommodation options that they can afford.
Many middle class professionals are finding it more and more difficult to cope with Debt accrued from a lengthy mortgage. Add to this the increases in council tax and stamp duty and even more are handing in the towel and seeking alternative accommodation.
As the housing market demands more and more from buyers, those with their hearts set on owning their own home can expect mortgage rates to increase, and by 2026 a foot on the property ladder will demand ten times the average salary.
London’s increasingly high prices are making it impossible for people to live and work in the capital, as the country becomes divided between the ‘have-nots’ and the ‘have-lots’. The only way to keep the country balanced is to increase the number of homes available for social housing.
London Councils calculate that at least £1.3 billion is needed to supply additional homes for families in the capital. This price will cover 70% of accommodation needed for social housing. Compared with 2006-2008, the amount needed to help curb homelessness has increased by 50%.
Many argue that the council Right to Buy scheme has allowed properties to become swallowed up, as tenants purchased their homes for a mere snip and sold them on for massive profits. They find it grossly unfair that taxpayers should seep into even more debt to fund more social housing when in the past; council tenants have used them for greed rather than need.
