It’s no secret that the children of wealthy families have an upper hand in success. Money and connections have historically helped them break into Hollywood and even the C-suite. Now, new research shows that U.K. parents who reaped the rewards of the country’s housing boom three decades ago set their kids up for success down the line.
Around the turn of the 21st century, the U.K. witnessed a dramatic surge in housing prices: The costs rose from four times people’s annual earnings in 1995 to eight times by 2010. Homeowners subsequently enjoyed a wealth windfall, and it resulted in their kids receiving more housing wealth and higher-paying jobs, according to recent research from the Institute for Fiscal Studies. Lower-income renters, on the other hand, were faced with new affordability challenges.
