Did Previous Generations Find Home Owning Easier ?

Brian Milligan, a Personal Finance Reporter for the BBC, looks at whether previous generations had it any easier owning a home.

In 1964, 300 people camped for upto 4 days on a building site in Sunbury-on-Thames to pay a £50 deposit  on a new home. In 2013 a dozen of these initial buyers still live in these homes.

One such couple that still live in their house, 50 years later, are Bernard and Maureen Clayton. They paid £4,300 for their new home.

The prices were low by todays standards but affording the repayments was not easy. "It was difficult," says Bernard. "We could afford it. We didn't starve, or anything silly like that."

Neil Butson's parents bought a house too. After growing up, and leaving home, he decided to move back to the area. However when he made his purchase, in 1991, the price of houses had soared to £88,000.

There was help, though, as homeowners could claim tax relief on mortgage payments.

Jo and Tim, bought a home in Sunbury in 2013 paying £325,000. This represents a rise of 7,000% on house prices since 1964. They have a mortgage of £1,500 a month which represents 40% of their joint income.

The article points out that if house prices had risen by inflation alone, Jo and Tim would have been able to buy the same house for only £73,000.

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