Changing level of homeownership among young adults.
- Well under half of today’s young adults own their own home (41% of those aged 25–34). Although this has not changed much in the last decade, it was very different for their parents’ generation.
- 30 years ago, two thirds (66%) of 25 to 34-year-olds had bought their own home. The steep decline in owner occupation between 1991 and 2021/2022 accounts for the steep increase in the size of the private rented sector.
- With a general election on the horizon, it seems likely that all parties will court the young adult vote with policies to ease that first step onto the housing ladder. Source: #Dataloft (https://dataloftinform.co.uk/), English Housing Survey, data for 2021/2022.
Why is this?
Changing level of homeownership among young adults.
Jukes Estate Agents Harlow are under no illusion as to what has happened.
Co owner Geoff Flewers continued:
“Firstly in 1993 the average house price was just 3.13 times the average wage. (Average house price £55,437. Average wage was £340 a week)”.
“Secondly in the last 30 years, house prices have rocketed ahead of wages. Now the average house price is £288,000 were as the average wage is just £569 a week”.
“Therefore, house prices are 9.7 times the average wage”.
Whilst there can be no doubt that this has been a factor in the increase of the private rented sector. Lee Venables the other co owner of Jukes Estate Agents Harlow was quick to point out the following:
“Young people are not just going into the private rental sector. Many are continuing to live with their parents while they strive to save a decent deposit. If they can save up to place a large deposit then the mortgage repayments are far more realistic!