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Collapse in Home Ownership Among Young People

March 5, 2013 | Professionals  

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The Chartered Institute of Housing (CIH) has revealed in a report published yesterday that 43% of people aged 25 to 34 owned their own home in 2012. In 1992, 67% of people in this age bracket owned their own home. The drop was even more considerable among those aged 16 to 24, where home ownership has plummeted from 39% in 1992, to just 14% last year.

The consequences of this can be seen in the private rented sector, which has more than doubled in the same period, with private rented housing accounting for 4.1m homes in England in 2011, up from 1.7m twenty years ago.

Grainia Long, chief executive of the CIH, said, “For millions of young people, the dream of home ownership 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 research was part-led by York academic Professor Steve Wilcox of the University of York with Professor Hal Pawson of Heriot-Watt University. They obtained their figures from the government’s Labour Force Surveys over the past 20 years, and are analysed in CIH’s Housing Review 2013, which they produced in partnership with housing organisation Orbit. This housing review is to form part of a new campaign from CIH that they’re calling ‘Uncovering the true cost of housing’, in which they aim to define the problems that make up the housing crisis.

Grainia Long said, “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 a deposit – while the deposit they need to get a mortgage becomes even larger.”

Overall home ownership fell far less dramatically, dropping from 68% in 1992, to 64% in 2012. Among people aged 35 to 44, home ownership crashed from 79% to 63%. For the 45 to 54 age bracket, the dip was half as bad, falling from 79% to 71%.

But the overall home ownership figures are bolstered by the growing number of older home owners. Among those aged 55 to 64, home ownership grew from 73% to 77%, while for the over-65s, home ownership leapt from 60% to 76%.

Paul Tennant, chief executive of Orbit, said” ‘This review illustrates yet again the scale of the challenges we face in delivering the homes this country so desperately needs. The 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.”

 

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