Tuesday, September 29, 2020
Real Estate

England home ownership among young people rises

England home ownership among people aged 25 to 34 rises for the first time in over a decade

England home ownership has hit a new level as the proportion of young people aged 25 to 34 who own their own home in England has risen for the first time in over a decade, according to new figures.

The official figures from the Office for National Statistics (ONS) show that 41% of people in the age bracket now live in a home they own. After a decade of decline, England home ownership figures now equal the proportion of young people living in private rented accommodation.

This is a turnaround from the decade after 2003-04, during which the number of young people on the property ladder dropped from 59% to 36%.

In 2003-04, 21% of 25- to 34-year-olds lived in the private rented sector, growing to a peak of 48% in 2013-14. Since then, there has been a steady decrease to 41% in 2018-19.

The average age of first time buyers in 2018-19, was 33 years.

Housing analysts said the government’s help-to-buy scheme, launched in 2013, has supported the rise in young people getting on the property ladder, along with stamp duty relief for some first-time buyers.

Founder of Project Etopia, which develops modular homes, Joseph Daniels, told the Guardian that Help-to-buy and stamp duty relief are behind the march of the first-time buyers, who will be powering a recovery in home ownership in this age bracket.

Falling home ownership among the young still threatens to become a national crisis rooted in high property prices and stretched affordability but the tide has finally started to turn, he said.

Mr Daniels said that it will take considerable time and momentum until owner occupancy among younger people returns to the 59% seen in 2003-04.

The annual English Housing Survey found that the overall number of homeowners has remained unchanged at 64% for the past six years, since peaking at 71% in 2003.

The number of people in privately rented accommodation has also remained static at 19% for six years, equating to 4.6 million households — but this figure has doubled since 2002.

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This article is for information purposes only.
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