A report from the Chartered Institute of Housing (CIH) shows how ownership amongst young people in England has dropped by a third during the past two decades. In 1992 67% of people aged between 25 and 34 owned their own home, compared to just 43% in 2012.
The figures are even worse for people aged between 16 and 24 as homeownership has fallen from 39% to just 14%. The CIH analysed figures from the governments Labour Force Surveys over the past 20 years for its UK Housing Review 2013 which is produced in partnership with Orbit. The review is part of the new campaign from the CIH called ‘Uncovering the true cost of housing,’ which looks at the problems making up the current 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 decline in home ownership in the UK has increased the pressure on the private rental sector, as in 2011 there were 4.1 million rental homes in England compared to 1.7 million 20 years earlier.
Long went on to say “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 deposit-while the deposit they need to get a mortgage becomes ever larger.” She feels that while government schemes designed to help young people get a foot in the property ladder are welcome, their impact is limited compared to the size of the challenge.
Overall figures for homeownership have fallen from 68% in 1992 to 64% in 2012. The homeownership rate amongst 35 to 44-year-olds has fallen from 79% to 63%, while the rate amongst those aged between 45 and 54 has fallen from 79% to 71%. However homeownership rates are growing amongst older people. The rate in the over 65 has increased from 60% to 76%, while for those aged between 55 and 64 it has increased from 73% to 77%.
Paul Tennant, Orbit chief executive commented on the review saying “This review illustrates yet again the scale of the challenges we face in delivering the homes this country so desperately needs. 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.”