Housing crisis leaves low-income UK families far behind Western European counterparts: Study

Low- to middle-income families in Britain are significantly poorer than their counterparts in western Europe, with high housing costs identified as a primary factor, according to a new analysis by a British think tank, Anadolu reports. 

The Resolution Foundation found that while overall prices in Britain are 8% higher than the average across the 38 member countries of the Organisation for Economic Cooperation and Development (OECD), housing costs disproportionately burden less well-off Britons.

Housing expenses in the UK are 44% higher than the OECD average, eroding the financial stability of lower-income families.

Housing costs offset cheaper food prices

The study said the higher cost of housing in Britain far outweighs the benefits of relatively cheaper food.

While food prices in the UK are 12% lower than the OECD average, lower-income households, which spend more on necessities like rent and utilities, find little relief due to the soaring cost of housing.

The disparity is stark when compared to families in other western European nations. German families in similar income brackets are 21% better off than their UK equivalents, with an annual gap of £2,300 ($2787).

The divide with Dutch families is even more pronounced, with lower-income households in the Netherlands enjoying a 39% advantage over their British counterparts.

The findings highlighted the struggle faced by UK households to make ends meet amid rising living costs.

Housing is a critical expenditure for families on low to middle incomes, and its outsized share of household budgets leaves little room for savings or discretionary spending.

Earlier it was reported that London is aging faster than any other UK city, according to the study.