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Home ownership among 25-year-olds halved in 20 years

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Local Government Association research finds ownership among the age group has fallen from 46% to 20% in the past two decades. The proportion of 25-year-olds who own a home has more than halved over the past 20 years, according to a report that points to the generational impact of the housing crisis. Home ownership has dropped from 46% of all 25-year-olds two decades ago to 20% now, the Local Government Association said. The LGA, which represents more than 370 councils in England and Wales, said more homes for affordable or social rent are needed to allow people to save up for a deposit and get on the housing ladder.

Analysis for the LGA found construction of social rented homes – owned and managed by local authorities and housing associations – plunged by 88% between 1995-96 and 2015-16. The association warned that the sharp fall, combined with rents rising at a faster pace than incomes, meant that home ownership was becoming more difficult for an increasing number of people. Home ownership across all age groups has fallen by 4.4% since 2008, while private renters increased by 5.1%, the LGA said.

Council leaders also warned of an urgent need to provide more homes suitable for Britain’s ageing population, which would help reduce demand for NHS provision and other care services. The proportion of 25-year-olds who own a home has more than halved over the past 20 years, according to a report that points to the generational impact of the housing crisis.

The government is expected to reveal how it plans to address Britain’s housing shortage and boost supply in a housing white paper in January. Local councils would have a crucial role to play. As there is no silver bullet and everyone must come together to meet the diverse housing needs in our villages, towns and cities,” he said. “The government’s housing white paper is an opportunity to boost housing supply and affordability. It must recognise that a renaissance in housebuilding by councils will be crucial to helping ensure the mix of homes to rent and buy that are affordable for those people that need them. “This means powers and funding given to councils to replace sold homes and reinvest in building more of the genuinely affordable homes our communities desperately need.”

The LGA’s housing commission has set out more than 30 recommendations for how local and national government could work together to address the nation’s housing challenges.

The proposals include freeing councils from restrictions on their borrowing in order to help them build more affordable homes; making it easier for councils to purchase land ready for home building; and ensuring funding is available to enable older people to modify their own home.

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Posted by MMB Finance Swindon on 28 December 2016