Young people giving up dream of home ownership
The aspirations of a significant number of young Britons reveals a worrying trend, as the majority do not anticipate being able to afford to buy their own homes, new research has revealed.
A study by The Urban Collective indicates that young people renting properties would love to own their own homes, but most do not see how they will be able to afford to take that first step.
Of those paying rent, 29.5% have no intention of buying a home, while 51% of respondents predict that the property market will be the exclusive domain of oligarchs and high net worth individuals over the coming 15 years.
A separate survey from the English Housing Survey has revealed that the number of privately rented households has doubled in the past 16 years.
According to the data, there were 2 million rented homes in 2000 and this figure rose to 4.5 million in 2015/16.
The research underlined that the vast majority of tenants yearn for a change of circumstances, with 71% unhappy at the prospect of renting forever. This figure was even stronger among those living in London, where 84% of tenants want to escape the renting scenario.
Mayank Mathur, co-founder of The Urban Collective, said:
“Fifteen years ago, renting was a stop gap until people could save enough to buy. Today, owning a home is a long-term goal and in 15 years’ time it might just be an impossible dream.”
The latest news on young people’s perceptions of the property market come as the industry awaits further details of multi-party action from Parliament, in the wake of the Government’s Housing White Paper released in March.
The White Paper aimed to address a number of housing issues, but was widely condemned for the lack of specific planning outlined to achieve the intended goals. After successive governments have failed to meet housing objectives there is a degree of cynicism that without such planning this government will also fail to deliver.
Among the issues blamed for the shortfall in housing is that there has not been enough local authority planning, while the speed of house building has also come in for criticism.
Earlier this week the Government announced a £54 million initiative to release land for the creation of thousands of new homes.
Whilst these funds have been released for a purpose which may be intended, at least in part, to help younger people get on the housing ladder, there are many other issues to resolve and the volume of houses able to be built with the money is unlikely to have a significant overall impact on the deficit.
This information should not be interpreted as financial advice. Mortgage and loan rates are subject to change.