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'I earn a good wage but still cannot afford to move out'

Sarah Mann, 32, has a good job but was forced to move back into her parent's house in Croydon, south London, after splitting up with a partner.

She says her salary is not that of a six-figure banker's but is "better than the average wage," yet still she cannot afford to buy a property.

Speaking to ITV News, she said: "You just think, why do I work so hard, who do I do all those extra hours, if it means all I can do is find somewhere to put a roof over my head. What kind of quality of life is that?"

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Shelter: Young need 'bolder action' than Help To Buy

Young people need "bolder action" than the Government's flagship Help To Buy scheme if they are going to be financially independent enough to move out of their parents' home, a housing charity said.

Campbell Robb, chief executive of Shelter, said:

The 'clipped wing generation' are finding themselves with no choice but to remain living with mum and dad well into adulthood, as they struggle to find a home of their own...

Rather than pumping more money into schemes like Help to Buy, we need bolder action that will meet the demand for affordable homes and not inflate prices further.

From helping small local builders find the finance they need, to investing in a new generation of part rent, part buy homes, the solutions to our housing shortage are there for the taking.

Politicians of all parties must now put stable homes for the next generation at the top of the agenda.

– Campbell Robb

Areas of UK where most adult children live with parents

Housing charity Shelter uncovered several areas of England where the number of adult children living with their mum and dad is much higher than other parts of the country.

  • Castle Point in Essex where 45% of working 20- to 34-year-olds live with their parents.
  • Knowsley in Merseyside where the figure is 42%.
  • Solihull 38% of young working adults still live in the home they grew up in.

Nearly 2m working adults 'still living with parents'

Some 1.97 million adults aged between 20 and 34-years-old are still living with their parents, according to a major housing charity.

Read: Property prices likely to double in 'broken' market

Housing
Young people are priced out of the housing market, Shelter warned. Credit: PA

Shelter said data collected during the last Census showed nearly 2m adults in England were still living with mum and dad and urged the Government to do more to help the "clipped wing generation" finally fly the nest.

A survey commissioned by the charity also found that nearly half (48%) of 250 young adults who live with their parents said they do so because they cannot afford to rent or buy their own home.

The Census also showed the number of grown up children still living with their parents varied between different parts of England.

Read: 1 in 10 have to live with parents

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Reasons for buying London home 'starting to change'

The rush to buy property in the capital is slowing because pent-up demand caused by the 2008 crash has started to slow, a housing expert said.

Richard Donnell, director of research at property analysts Hometrack explained:

Overall, market conditions have been strong since early 2013, as a result of pent-up demand returning to the market outside London and with buyers encouraged by low mortgage rates and the launch of Help to Buy, but it now appears that market sentiment is starting to change.

"House prices were unchanged in London over the month, the lowest monthly change for 19 months.

– Richard Donnell

Where house prices rose and fell around UK in July

  • House prices were unchanged month-on-month in London, Wales and the North East, while they increased by 0.1% in Yorkshire and Humberside.
  • They increased by 0.2% in the East, West Midlands and the North West.
  • And by 0.3% in the South East and the South West.
  • East Anglia recorded the strongest month-on-month uplift in property values at 0.5%.
  • Across England and Wales, around one quarter (24%) of postcode districts saw prices increase over the month, falling back strongly from the spring, when around 50% of postcodes were recording price gains.
  • Around 1.5% of postcodes across the country saw prices fall month-on-month in July.

London house price rise 'slowed to lowest rate' in July

London house prices slowed to their lowest rate last month, making July the weakest growth in the capital's property market in 18 months, experts said.

Read: Housing prices: National average up 11.8%

Housing
Only 12% of postcodes in London had property which rose in value during July. Credit: PA

Momentum slowed to just 0.1% month-on-month, property analysts Hometrack found.

The rise in house prices "slowed dramatically" with just 12% of London postcodes registering price gains in July and a further 11% reporting a drop.

Hometrack said this marked the first time in four years that London has had a smaller proportion of markets registering price gains than regions across England and Wales.

Read: Record level gap between house prices in London & rest of UK

More than half of 'bedroom tax' households 'in arrears'

Almost 60% of households affected by the "bedroom tax" changes were in arrears as a result of the cut to their housing benefit, an internal Government review has found.

Under the policy, social tenants deemed to have a spare room see their rent eligible for housing benefit reduced by 14%, rising to 25% if they have two or more extra bedrooms.

More than half of households affected by 'bedroom tax' were in arrears Credit: PA

Some 20% of those affected had paid none of the shortfall and 39% had only paid their landlords part of the money owed, the interim report for the Department for Work and Pensions (DWP) found.

The report found 522,905 households were affected by the policy in August 2013, which equates to 11.1% of social tenancies. Some 57% of claimants were cutting back on household essentials and 35% on non-essentials in order to pay their shortfall.

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