Houses prices that are not dropping as predicted are continuing to cause problems between generations as many homeowners are sitting on tax-free capital gains but other people are not able to get onto the property ladder. For many people, strict credit restrictions and high house prices have kept many people renting instead of purchasing their own home.
Some people in their thirties have even been forced to remain at home instead of purchasing their new home or renting their own place. It seems that the divide comes at the age of 45 with those older owning a home and those younger faced with the problems of the current housing market.
Markit, the statistician company, questioned 1,500 people and found that out of those included in the survey most of the people over the age of 45 thought that house prices would fall during 2013 and those under the age of 45 felt that they will actually start to rise again in 45. Homeowners also tend to be gloomier about how house prices will fair next year whereas tenants tend to believe that house prices will increase next year.
Head of UK residential research Grainne Gilmore for Knight Frank stated that the age gap is clearly an example of how the economic troubles are effecting different generations of people.
He went on to explain that usually older homeowners are those who own their home and have already paid off their mortgage so it is only fitting they are prepared to lose some of the money they have put into their house. On the other hand, the younger generation needs to buy a home and feel prices will increase continuing to keep them off the market.