Homeownership is 'unachievable dream' for young
Homeownership among young people in England has collapsed by a third in the past two decades, according to a report from the Chartered Institute of Housing.
The report published today showed that 43 per cent of people aged 25 to 34 owned their own home in 2012 – down from 67 per cent in 1992.
Among those aged 16 to 24, homeownership has dropped even further, from 39 per cent in 1992 to just 14 per cent in 2012.
The figures, from the government’s Labour Force Surveys over the past 20 years, are analysed in the CIH’s UK Housing Review 2013, produced in partnership with housing association Orbit. It forms part of a new campaign from the CIH called Uncovering the true cost of housing, which aims to define the problems that have led to the housing crisis.
Grainia Long, chief executive of the CIH, said: ‘For millions of young people, the dream of homeownership remains just that – an unachievable dream. The country’s chronic shortage of affordable homes to buy means they are being denied the same opportunities enjoyed by their parents and grandparents.’
The CIH warned that the decline in homeownership is putting increasing pressure on private rented housing, which accounted for 4.1 million homes in England in 2011, up from 1.7 million two decades earlier.
Ms Long said: ‘In many parts of the country rising demand in the private rented sector is pushing both rent and house prices ever higher, making it even harder for young people to save for a deposit – while the deposit they need to get a mortgage becomes even larger.’
Overall homeownership dipped from 68 per cent in 1992 to 64 per cent last year.
For older people however homeownership is on the rise – among the over 65s it jumped from 60 per cent to 76 per cent while among those aged 55 to 64 it rose from 73 per cent to 77 per cent.
Paul Tennant, chief executive of Orbit, said: ‘This review illustrates yet again the scale of the challenges we face in delivering the homes this country so desperately needs. The government must continue to do everything it can to support and encourage investment in housing, while we as organisations must innovate and collaborate to develop new models of supply.’
