According to official figures, the number of 25 to 24 year olds who own their own home in England has risen for the first time since 2002.
The most recent English Housing Survey revealed that 41% of young people live in a home they own and another 41% live in privately rented accommodation.
Home ownership overall has remained about the same over the last six years according to the Office for National Statistics (ONS). It peaked in 2003, at 71% and has declined to 64% since then.
Young people experienced the sharpest decline during this period, but have managed to steadily rise at the end of 2019.
Research by the Institute for Fiscal Studies (IFS) found that from 1995/96, 65% of 25 to 34-year-olds with incomes in the middle 20% for their age group owned their own home. By 2015/16, this age group had fallen to only 27%.
The IFS argues that this difference was down to the rise in house prices compared to largely stagnant income.
In 20 years, house prices increased by 152% while incomes only grew 22% over the same period. Despite this, figures have risen towards the end of 2019 to early 2020.
Joseph Daniels, the founder of Project Etopia said:
“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.
It will take considerable time and momentum until owner occupancy among younger people returns to the 59% seen in 2003-04.”
Homeownership and Coronavirus
It is unclear whether the Coronavirus crisis will cause the figures to fall again following the hit to the property market, however, the government is imposing measures to aid buyers, such as the Stamp Duty Holiday.
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