Income Inequality

A typical pensioner now earns £20 more per week than a typical person in employment according to a new report by the Resolution Foundation. Labour market access and failure to build assets were both noted as factors contributing to lower living standards for the younger generation. Financial success in many regions of the country has over the past 5 years been inextricably linked to the housing market rather than earnings. In extreme cases, such as Westminster, average household earnings over this period (£395,000) have almost been matched by average house price appreciation (£368,400). Even in more typical markets such as Manchester (income over 5 years: £176,000, appreciation: £29,000) and Newcastle (£162,000 over 5 years / £18,900), home ownership has a clear hand in creating wealth.