A perfect storm.

Politicians and policy wonks are worried about a 'perfect storm' that will hit the aspiring young middle-classes. A report from the Child Poverty Inquiry set up by David Cameron will be published on Thursday by David Laws the education minister. It will demonstrate the age group between 25-34 are the lowest for ten years in home ownership, down to 40% from over 60%. Why this dramatic change of fortune and what are the consequences? Over many years now there has been a real squeeze on the living standards of the middle classes, their salaries have not kept up with inflation and more importantly - their aspiration have outstripped them. The result, more debt by borrowing against the value of their homes. Another factor has been the vast increase in student debt just at the time when they should be saving, before the kids arrive. David Miliband has called this demographic the - squeezed middle. In addition this is the group that will elect the next government. They occupy the centre ground politically, so this is why we are seeing a clutch of policies specifically aimed at them. The election in May 2015 its not that far off in order to mend the roof before the perfect storm arrives.