Home ownership among young people increases after a decade of decline
After more than a decade of decline, the proportion of 25-34 year olds who own their own home has increased and there are now equal proportions of 25-34 year olds living in the private rented and owner occupied sectors.
The Government’s latest English Housing Survey shows that in 2018-19, 41% of 25-34 year olds lived in the private rented sector and a further 41% were owner occupiers.
Between 2003-04 and 2013-14, the proportion of 25-34 year olds in owner occupation decreased from 59% to 36%. Meanwhile, the proportion of 25-34 year olds in the private rented sector declined from its peak at 48% in 2013-14 to 41% in 2018-19.
Despite this, the figures show that the number of first-time buyers dipped from 785,000 in 2017-18 to 727,000 in 2018-19.
Joseph Daniels, founder of modular developer Project Etopia, commented: “Falling home ownership among the young still threatens to become a national crisis rooted in high property prices and stretched affordability but the tide has finally started to turn.
“Help to Buy, both the equity loan and the ISA, and Stamp Duty relief, are behind the march of the first-time buyers who will be powering a recovery in home ownership in this age bracket.
“This points to a welcome softening in affordability issues but much more progress needs to be made. It will take considerable time and momentum until owner occupancy among younger people returns to the 59% seen in 2003-04.
“House building will need to keep pace with growing demand and buyers face very different propositions across the country with prices still unaffordable in many parts of the UK, particularly in the south of England.”
Source: Financial Reporter