Elderly and rich to be the only homeowners within a decade
Nine out of ten under 35s could be ‘frozen’ out of home ownership by 2025 new research has found. People within the 16-35 age group are doomed to become permanent renters according to the Resolution Foundation’s findings, despite earning a modest income. Three quarters of all homeowners are now aged 45 and over.
The majority of Britons not leaping onto the property ladder gave the reason that they hadn’t been able to because of concerns over affording the purchase of the property and the mortgage. In fact, the top three reasons given not to buy their own home was due to a financial crisis. Whereas only slightly more that 10% of Brits said they had not bought their own property yet due to enjoying the flexibility of renting.
The research by the Resolution Foundation discovered that the number of people under 35 who own a home has significantly decreased from 57% in 1998 to a mere 25%. At the same time, the amount of people choosing to privately rent property has increased by more than half from 22% to 53%.
Matt Whittaker, chief economist at the Resolution Foundation said “ With the average modest income household having to spend 22 years to raise the money needed for a typical first time buyers deposit… it’s no surprise that owning is increasingly a pipe dream for many”.
If the pace of decline of home ownership continues we can anticipate fewer than one in ten to own their own home by the end of the next decade.
Aislinn Devlin, Pali Ltd
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