Home owning an almost impossible dream for under-30s
Rate of under 35's renting soars over last ten years
March 7, 2013
The dream of homeownership is dying for young people as private renting jumps to record levels. According to the latest Nationwide house price index between 2002 and 2012 the proportion of 25 to 34 year old’s increased from 40% to 57%. For 16 to 24 year old’s this figure reached 90%, up from 77% ten years ago.
House prices have refused to fall over the last four years and with much tighter lending restrictions many young people have little hope of getting on the ladder. The problem is particularly acute in London and the South East where house prices have soared over the last ten years. Last week it was revealed that the average first-time buyer in the capital has to find more than £60,000 in order to afford a deposit. Consequently homeownership is increasingly a privilege of elites – those with wealthy parents or telephone number salaries.
This is robbing a generation of any prospect of getting onto the housing ladder. First-time buyers should be providing the life blood of London’s housing, and need more support than ever.