Business
UK Housing Boom Turns Parental Wealth into Key Determinant of Young Adults’ Opportunities
A new report from the Institute for Fiscal Studies (IFS) has found that Britain’s long-running housing boom has made parental property wealth a decisive factor in shaping the career and earnings prospects of young adults.
The report highlights that, while wages and education remain important, the ability of parents to support their children in buying or renting property strongly influences where they live, the jobs they can pursue, and the wealth they accumulate. “Housing costs are a growing barrier to young people accessing high-productivity labour markets and…an individual’s housing, location and career choices are increasingly determined by the amount of financial support they receive from family,” the report stated.
House prices in the UK have risen sharply since the 1990s, particularly in London and the South East, while homeownership among young adults has declined. The IFS report argues that rising property prices have transformed parental housing wealth into a key determinant of opportunity. “Increased parental housing wealth causes larger wealth transfers to adult children… wealthier parents help their children overcome liquidity constraints to move to high house price parts of the country,” the study said.
Living in London, Britain’s most expensive housing market and highest-earning labour market, has become increasingly linked to parental support. Access to the capital allows young adults to benefit from better jobs, higher wages, and professional networks. The report estimates that moving to London from a low-paying area initially raises earnings by 15 percent, increasing to over 50 percent after eight years.
The report also finds that parental wealth influences career choices. Offspring from wealthier families are more likely to take creative roles in media, arts, design, fashion, and sports within London, while those from less advantaged backgrounds are more often employed in science, engineering, or health jobs outside the capital.
Gender differences are notable. For men, parental housing wealth significantly boosts the likelihood of entering top-earning occupations in London. “Men with a college degree who move earn on average 10% more than those who do not move,” the report found. For women, the effect is less pronounced, with parental wealth slightly increasing the chance of leaving paid work or shifting away from mid-level earnings.
The IFS data illustrates the scale of the impact: “Having parents who have £100,000 (€115,300) more gross housing wealth causes a child to attain around £15,000 more in gross housing wealth at age 28 to 37.”
Economists David Sturrock and Peter Levell, who authored the report, concluded that Britain’s housing boom has reinforced existing inequalities and strengthened the transmission of advantage between generations. Young adults without wealthy parents face growing barriers to high-paying jobs, prime rental markets, and homeownership, highlighting the enduring influence of family wealth on social mobility in the UK.
Business
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Business
Binance Faces EU Regulatory Scrutiny Over Continued Service to Customers
European regulators are examining how Binance continues to serve customers in the European Union after the cryptocurrency exchange failed to obtain a licence under the bloc’s Markets in Crypto-Assets Regulation, according to a Financial Times report.
The scrutiny centres on Binance’s use of the “reverse solicitation” exemption, which allows companies based outside the EU to provide certain services to customers when those customers approach the company entirely on their own initiative.
Binance was expected to take steps to wind down its European operations after failing to secure a MiCA authorisation by the summer deadline. Under the rules, companies without the required licence were expected from July 1 to limit their activities to helping customers transfer or sell their existing crypto holdings.
The European Securities and Markets Authority and regulators in countries including France, Germany and Greece are examining Binance’s use of the exemption, the Financial Times reported, citing people familiar with the matter.
Some regulators have reportedly requested information from Binance and could consider enforcement measures, including fines, if they are not satisfied with the company’s responses. The review also extends to other cryptocurrency businesses using the same exemption.
ESMA told the Financial Times that reverse solicitation is intended to be a limited exception and should not be used to avoid MiCA requirements. The Dutch financial markets regulator AFM similarly said crypto asset service providers must meet specific requirements before relying on the exemption.
Binance’s local licences in countries including France, Spain and Poland lapsed under the new EU framework. Customers in some other EU markets are served through Binance’s Abu Dhabi entity, which has been regulated since December 2025.
The exchange said its European operations remain compliant with applicable rules.
“In Europe, Binance remains committed to operating on a long-term, compliant basis under the EU’s Markets in Crypto-Assets Regulation. We are actively working toward becoming MiCA-authorised,” a Binance spokesperson told Euronews.
ESMA declined to comment on the specific case when contacted by Euronews. It said supervision, investigation and enforcement under MiCA are responsibilities of national authorities, while ESMA’s role includes promoting consistent supervision across EU markets through cooperation, information-sharing and guidance.
Any enforcement action against Binance would therefore need to be taken by the relevant national regulators rather than ESMA itself.
The latest scrutiny adds to Binance’s regulatory challenges in several major markets. In 2023, the company agreed to pay $4.3 billion in penalties in the United States after pleading guilty to criminal charges linked to money laundering and violations of US sanctions.
The outcome of the EU review could affect Binance’s ability to continue serving European customers while it seeks authorisation under MiCA. The exchange has said it intends to obtain the required licence and operate in the bloc on a long-term basis.
Business
Air France-KLM and Lufthansa Submit Final Bids for TAP Stake
Air France-KLM and Lufthansa submitted their final bids on Wednesday for a stake in Portuguese airline TAP Air Portugal, bringing the bidding stage of the privatisation process to an end and leaving the next decision with the Portuguese government.
The two airline groups are competing to acquire an initial 44.9% stake in TAP. Their final proposals are expected to include improvements to the binding offers submitted in July, according to Parpública, Portugal’s state shareholding manager.
Parpública said it will now prepare a report assessing the changes proposed by the two bidders. The report will examine the overall merits of the final offers before being sent to the government ministers responsible for finance and air transport.
Wednesday was the deadline established by the Portuguese government for the submission of the final proposals. Infrastructure and Housing Minister Miguel Pinto Luz said earlier this week that the government would have 15 days to take a position after receiving the bids.
The proposals will be assessed on financial and strategic commitments, including investment plans, fleet development, maintenance operations, sustainable aviation fuels and compliance with labour obligations.
Air France-KLM said it had submitted a final proposal for a shareholding of up to 49.9% in TAP, signalling its continued interest in expanding its position in the Portuguese airline.
Air France-KLM Chief Executive Benjamin Smith said the group had strengthened its proposal during the final bidding period and described it as a long-term strategic plan for TAP.
The group said its proposal would place Lisbon at the centre of its operations in Southern Europe and focus on expanding connectivity, creating jobs and generating economic value in Portugal.
Lufthansa also said its final proposal was based on its experience developing network airlines and its plans to support TAP’s growth and competitiveness.
The German airline group said it aimed to help strengthen TAP’s position as Portugal’s national carrier while supporting its future development.
The privatisation process has included the possibility of negotiations to allow bidders to improve their proposals before a preferred investor is selected. The eventual transaction will still require several formal approvals.
The sale is expected to require approval by Portugal’s Council of Ministers, as well as clearance from European competition authorities before it can be completed.
The government is seeking to sell 44.9% of TAP initially, while a further 5% of the airline’s shares is reserved for employees. Any portion of that employee allocation that is not subscribed could subsequently be acquired by the investor selected by the government.
The final bids mark the latest stage in Portugal’s effort to bring a strategic airline investor into TAP following the company’s restructuring and return to financial stability. The government will now review the competing proposals before deciding on the next stage of the process.
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