A home: Dream far behind of the middle class family

These days so many people around the world are worried about their income and expenditure and even worst thing is whole humanity is being materialised into money. It is really a matter of sickness. Low income leads to poor health and poor health leads to low income. This is a vicious circle of income and health. New technology has affected people’s life in ways like; firstly, they have to afford the cost even in a static income condition and due to capital intensive technology workers are being redundant and ultimately unemployed. Several study and reports say that low income is also a reason of bad health and inequality. Income affects health through a psychological and behavioural mechanism.

With money people buy the key necessities, which are needed for better health too, such as shelter, warmth, food and so on. It also allows them to avoid, or ameliorate, potentially harmful ‘toxins’ for example living in poor neighbourhoods that are noisy or polluted. This implies a basic level of financial resources is required for good health, but evidence suggests that there is a much more graded association: the more money people have the better their health*.  Low income due to unemployment should be considered a health-risk factor* as well.

A three bedroom house in a country side cost about £180,000. Taking mortgage from a bank at the rate 3.5 per cent for 30 years would be finally £375,000. For this, monthly payment under mortgage would be around £1000 except regular maintained and utility bills. How can a buyer manage, isn’t it a modern slavery?

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dream of the young family (Image google search)

Simply, let’s take a look at the income and expenditure situation. The UK’s minimum wage rate is 6.50 per hour times 40 hours per week equals to 260 pound. Majority of young couple can earn per month £2,000 but that might be lower after tax. What need to consider here is due to child care a wife cannot work 40 hours in a week let’s suppose 30 hours but the calculation above was 40 hours for both. So if we consider tax and child care then the total earning even lower than £2000 for a family. Let’s assume minimum essential expenditure they have to pay are house rent £800 utility bill (gas, water and electricity) £200 TV licence 12, TV channels, Internet, telephone and  mobiles 150, transportation including purchase vehicle, fuel, insurance and other maintenance £400. Al together minimum cost for two young couple is about £1562 excluding food, health, education, social and holiday costs. This is the cost a family cannot avert. This is the tentative case middle and lower classes of the UK’s family have been facing difficult situation.

Let’s see the situation of buying a house for a family. A three bedroom house in a country side cost about £180,000. Taking mortgage from a bank at the rate 3.5 per cent for 30 years would be finally £375,000. For this, monthly payment under mortgage would be around £1000 except regular maintained and utility bills. How can a buyer manage, isn’t it a modern slavery?  It impossible to buy a home for a family, who is working for maximum hour with minimum wage rate.

Hence due to the low income less money goes on housing, health, security, education and other basic needs. Insufficient investment on these issues is ultimately making them poorer. Due to bad health total number of work force reduces and the dependents increase. A hard working family who is being unable to own a home means they are being made homeless. It is state created problem. Then, why should those to be homeless people respect the nation! Also it would be  worthless to tie them in the narrow sense of state border. Home is not only a shelter to push out the night; it is a feeling of ownness and security of generations. Now a days it is considering that a home is the dream far behind of the middle class family. Considering these, affordable housing system should be a matter of urgency to protect future and young generation too.

Here is a post by Amy Willis for Metro.co.uk, worth reading –

Young workers unable to afford their own homes are spending almost half their take-home pay on rent, a report reveals.

The private tenants typically shell out £704 a month – 43 per cent of their wages.

Mortgage-holders, who tend to earn more, pay on average £612 – just 19 per cent of their pay.

‘Private renters are bearing the brunt of our dramatic housing shortage,’ said Roger Harding, campaigns director of charity Shelter.

‘The result is an entire generation forced to give up hope of a stable future and resign themselves to a life-time of expensive rents.’

Landlords put up prices by 8.2 per cent on average last year, the government’s English Housing Survey report shows.

Taking into account wage rises, the percentage of earnings spent on rent rose six per cent. Nearly half of 25- to 34-year-olds – 48 per cent – are now tenants, up from 21 per cent a decade ago.

The proportion of privately renting families has increased from nine per cent to 24 per cent. Chancellor George Osborne has cut tax relief for buy-to-let investors – a measure designed to put would-be homeowners on a more level playing field.

But there are fears that landlords will make back the lost income by raising rents even higher.

Matt Hutchinson, of flat and house share site SpareRoom.co.uk, said the new report painted a ‘bleak picture’.

‘Rents are now so high that many will find saving is close to impossible, putting homeownership still further out of reach,’ he said.

‘We’re not just talking about young professionals – families who crave stability for their kids are affected too.’

The National Housing Federation called on the government to back proposals for 120,000 new homes to be built a year. 

Feature Image: INCOMESCO/Jesi

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