Income distribution curves for single people in independent households (blue) and single people in Houses of Multiple Occupation (green)
The estimated results can be shown as an income distribution curve as in the above chart.
The horizontal axis of the chart represents a weekly household income, and the vertical axis represents the cumulative percentage of singles whose income is up to the specified level. the chart is, for example, as follow:
On the horizontal axis, A is the point which hong kong rcs data represents the minimum income required to rent a one-bedroom property (£394).
On the IND singles’ income distribution curve, B is corresponding to A.
On the vertical axis, C (41%) is corresponding to B.
This provide 59% (= 100-41) of IND single would be able to afford the rent.
This research supports those who are uncovering affordability issues in housing for younger people in the UK, such as the Institute for Fiscal Studies, reported on by such as the BBC.
Data from the Family Resources Survey, 2011 Census and Annual Survey of Hours & Earnings are available from the UK Data Service.
Chihiro Udagawa is a Research Associate at Cambridge Centre for Housing & Planning Research, Department of Land Economy, University of Cambridge. He has been studying UK housing economics, household finance and mortgage market with quantitative and econometric approaches. His research interest includes, among others, housing affordability for first time buyers at local housing market, youth renters’ financial behaviours and impact of bank of mom & dad on first time buyers.