Booming house prices benefit the old but see young struggle

Soaring house prices have led to a boost in older people's wealth at the expense of the young, a top Bank of England official has claimed. The Bank's deputy governor Ben Broadbent said downsizing older people charge huge sums for properties thanks to the price surge, which in turn has led first-time buyers and those with growing families to take out vast mortgages. “This is the inevitable result of the boom in house prices in the early years in the last decade,” commented Mr Broadbent. He went on to warn that a significant increase in high-risk lending to businesses has worrying parallels with the sub-prime mortgage disaster that led to the financial crisis.

Daily Mail (23/01/2019)