Number of home owners in their late twenties has fallen by nearly a third in last fifteen years, ONS figures show
Figures underline crisis in the housing market with young people increasing unable to get on the property ladder unless they have the financial support of their parents
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Your support makes all the difference.The number of people in their mid to late twenties who own their own home has fallen by nearly thirty per cent in just fifteen years, official Government figures reveal.
For the first time, the Office of National Statistics found, people aged 25-29 are now more likely to be renting than home-owning. 39 per cent have a mortgage compared to 43.3 per cent who are renting privately.
In 2000 people in their late 20s were more than twice as likely to own (56.5 per cent) rather than rent privately (21.4 per cent).
The new figures underline the crisis in the housing market with young people increasing unable to get on the property ladder unless they have the financial support of their parents.
Research carried out last year by the charity Shelter found that in the decades since 1969, house prices for first time buyers have increased by 48 times while incomes have only grown 29 times.
The average first time buyer house price is now £198,039. The trend is most stark in London where house prices are 59 times higher than in they were 1969, while incomes are only 34 times higher.
As a result first time buyers are now older as they need time to save deposits, and need above-average incomes both to save and to service a bigger mortgage.
The lack of affordable homes has fuelled the growth in the buy-to-let market which has further pushed up the price of housing and made big profits for some investors.
Laura Gardiner, Senior Policy Analyst at the think tank the Resolution Foundation said the trend had far reaching and damaging consequences.
“This dramatic shift from owning to renting has major consequences for young people and future generations,” she said.
“For many people, it brings major insecurity in terms of their housing costs and being able to find a secure long-term home.
“Ultimately it also means the nation’s wealth will become increasingly concentrated amongst a smaller pool of home-owners, with serious implications for social mobility.”
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