Almost half of young people want to own a property in the next 10 years
Seven out of 10 people think the difficulties faced by young people getting on to the housing ladder is one of the biggest problems in Britain today.
Almost half of people aged between 25 and 34 today who aren’t on the property ladder say they want to own their own home within the next 10 years, research from the Building Societies Association (BSA) showed.
But many in this age-group are highly pessimistic about their prospects of achieving home ownership, even within the coming decade. Indeed, 41% think the achievement of their dream is unlikely.
The past, current and future accommodation of young people shows a significant drop in those who own their own home – down from 40% in 2008 to 33% today.
However, a significant number, 62%, want to own their own home by 2028 and far fewer want to be living in private rented accommodation.
Today 14% of the so-called boomerang generation live in a property owned by a friend or relative. This is not somewhere that many of today’s 18-24 year-olds see themselves living in 10 years – just 3%.
High house prices driven primarily by insufficient housing supply is one of the root causes of an issue, which has significant societal and economic impact, the BSA said.
In practical terms, the biggest issue for the majority of 25 to 34 year olds face is pulling together a deposit.
On the other hand, 46% find difficult to access to a large enough or any mortgage, whilst 43% think one of the main issue concerns affordability of mortgage payments. Only 11% think the main issue is the complexity of the home buying process.
Paul Broadhead, head of mortgage & housing policy at the BSA, said: “It is stark and worrying how gloomy many young people are about their chances of future home ownership. With the average age of a first time buyer standing at 33, this is the very group most likely to be considering buying.
“If they are right and their chances in 10 years-time are still bad the societal divide and economic impact already being felt can only grow.
“Without a massive push to build more homes to overcome the deficit of decades it is hard to see that things will improve. Mortgage lenders also have a part to play to break down the barriers.
“As part of this the BSA has just commissioned a project to explore the potential for intergenerational lending -unlocking some of the housing wealth of the baby boomers.
“We are at the start of the process so cannot pre-judge outcomes but with around 39% of all housing wealth owned by the over 65’s already it is a valid part of the mix.”