Young home ownership falls to record low, data suggests
Was the Conservative Government not supposed to be bringing in the “biggest, boldest and most ambitious” scheme for house-building in a generation?
When is that going to happen, then?
After prices have risen again next year, so nobody who wants their own home will be able to afford it?
The percentage of young people in the UK who own their own home is at its joint lowest level since 1996, according to data obtained by Labour.
It suggests 44.9% of 20 to 30-year-olds are homeowners – the last time it fell to this level was in 2013.
It comes as economists predict strong property price growth in 2016.
The Royal Institute of Chartered Surveyors expects prices to increase by around 6%, while rents will see a 3% annual rise.
The rises are being driven by demand for new homes outstripping supply, Rics said, with other experts predicting even bigger rises in certain property hotspots outside London.
Source: Young home ownership falls to record low, data suggests – BBC News
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I am not only not surprised, but I have been wonder how on earth homes can ever be bought by the young, as they start theite lives with huge debts of £30,000 or more…. The government must stark raving mad not to have realised this.
Yes Chris, absolutely, the government is stark raving mad.
Young home ownership falls to record low, data suggests
No Surprise there then
Chris, to answer your last question first. I would replace ,must be raving mad’ with the phrase ‘can not give a dam’.
1. Job security has been severely reduced through Conservative liberalization of the job market, spooking mortgage lenders to restrict the supply of mortgages;
2, pay levels have not kept up with inflation, making affordability ratios worse (and even more so for public sector workers, often a large population in mortgage uptake numbers);
3. house prices have been allowed to rise beyond most people’s reach through developers’ restricting the supply of land for building on;
4 . By-to-let (in part stoked up by the release of personal pension funds) is further restricting supply.
So yes you are right in that nobody with a modicum of knowledge or an interest in adverse outcomes, would think anything other than that the percentage of first-time mortgage buyers would be failing like a stone in water.
However, there is one gleam of something on the horizon and that is that the Chancellor is using billions of tax payers’ money to guarantee first time mortgages – because banks and other money lenders will not take on the risk; after all the banks and in particular RBS nearly went bust doing that in 2008. So doesn’t that make you feel hopeful for the future of the housing market and the British economy.
shaunt.