A new report has shown that low to middle income earners won’t see any proper improvements to their finances until 2020 at the least.
This report refers to the households that bring in around £20,000 a year take home (around 5.8 million households). According to the research, the incomes for this group of households will gradually decline then start to level around 2016/2017. Then hopefully, the growth that is expected will come along and then in 2020, these households will go back to the same disposable income they had before the recession came along. However, if this predicted growth doesn’t happen, then incomes could be 8% lower than 2007, which isn’t good news.
Whatever the outcome, it’s still likely that the gap between the lower incomes and the higher incomes will get bigger.
Also, with regards to property, this group of people took around four years to save for a home deposit in 1992 and eight years in 2001. In comparison, these same households will now have to wait around 22 years to be able to get their own home. It also showed that those who are over 35 may never be able to stop renting. The reasons that researchers gave for the increase was that wages aren’t increasing at the same rate as house prices.
Although many people across the UK are looking for some positive news regarding the state of their finances, unfortunately the immediate future isn’t looking too bright. Hopefully we will get some good news about the economy soon.