Young people priced off the property ladder
Fewer young people are buying their own home than at any time in the last 45 years. According to the Office for National Statistics (ONS), in 1991 home ownership among 25 – 34 year olds was at around 65%, while for 35 – 44 year old it was around 80%. Fast forward 21 years to just three years ago and these figures have dropped to 45% and 65% respectively.
- House prices have risen by an average of 6.9% a year since 1980
- Deposits for first time buyers were at a highest during the economic downturn in 2009. Lenders would ask for a deposit of 28% of the purchase price!
- During the financial year 2013 to 2014 just under 141,000 new homes were built in the UK a decrease of more than 44% built during 1979 – 1980
The trends that are currently being seen is that young people are becoming first time buyers a lot later than they would have a decade ago. More often than not first time buyers are making assisted purchases usually with help from parents or have come into some money. Throughout the 1980s and 1990s, one in three 24 to 26 year olds were able to purchase their own property. Now it is closer to one in 10! The first time buyer peaked with around 600,000 people being able to buy their first home in 1986.
While these figures may make a depressing read for first time buyers, it does in fact mean that the lettings market is bouyant and because tenants are tending to stay longer in tenancies, now could be a wise time to consider purchasing a new investment property.
If you would like to discuss the property market then we would love to speak to you and can be contacted on 01803 200140