A leading think-tank has predicted that, within a decade, 9 out of 10 people living in Britain that are under the age of 35 and on an average income will be renting, a huge fall from the 57% home ownership levels for the same cohort in 1998?
Studies carried out by the Resolution Foundation have shown that property ownership is becoming more and more restricted to those that are older and wealthier.
The chief economist at the Resolution Foundation, Matt Whittaker, has said:
“In the mid-1990s, it took just three years for someone earning the average wage to save up money for a typical first time buyer deposit, it now takes twenty-two years – no wonder owning a house is becoming more and more difficult!
“In order to increase the amount of working families that are able to buy a home, the government must first tackle the housing shortage.
“More than half of the people profiting from the new Help-to-Buy government schemes have household incomes of around £40,000 or more. It is unlikely that the situation of those on a low to middle income will improve unless the supply of housing is boosted.”
The Resolution Foundation’s studies have analysed the data from family resource surveys that were conducted by the Work and Pensions Department. The studies have shown that there has been an overall decrease in home ownership, and the amount of young people privately renting (particularly those on low to middle incomes) has doubled.
Almost one third of all homeowners are now aged 65 and over, compared to 1988 where they accounted for less than one quarter. And levels of under 35s who are renting have doubled from 22% in 1988 to 53% now.
Overall, in the UK, the amount of people owning their own home has been declining since the beginning of this century and the amount of people owning their home in Britain is currently at around 63%. But what does this mean for our country? Is the dream of a property-owning democracy all but over?
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