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Home ownership falling among under-35s (23 January 2015)

Date: 23/01/2015
Duncan Lewis, Legal News Solicitors, Home ownership falling among under-35s

Figures from the Office for National Statistics (ONS) show that home ownership among those aged under 35 has fallen sharply in the UK.

In 1991, one-third of young adults aged 16 to 34 were homeowners – by 2011, however, just one in ten aged below 35 owned their own home.

Home ownership among the 25-34 age group has also fallen with less than half of young adults in that age group owning their own home, compared with two-thirds in 1991.

Home ownership in the 35-44 age group also fell from three-quarters to two-thirds between 1991 and 2011.

Older homebuyers are also finding it harder to obtain mortgages – traditionally people are expected to have a 25-year mortgage, meaning that after the age of 40, obtaining a mortgage can be harder unless a shorter mortgage term is chosen. However, Britons are now expected to work past the age of 65 – which used to be the State pension retirement age.

Almost three-quarters of those aged over 65 are homeowners, the ONS figures show – many having bought their homes while young and worked to pay off their mortgages.

ONS analysis has said that the drop in homeownership among the young is partly because of the rise in the amount of money needed for a deposit as house prices increase.

The coalition government’s Help to Buy scheme enables first-time buyers to put down deposits of just 5% on a new home – however, increased competition in the marketplace from overseas buyers and buy-to-let investors can still make finding affordable housing to buy or rent difficult.

An overheated property market in London has also pushed house prices up towards the upper limit of Help to Buy, which is £600,000. The average house price in London is now around £500,000.

House building across the UK also dwindled after the 2007 banking crash and subsequent credit crunch in 2008, leaving a chronic shortage of affordable new homes at a time when the UK’s population is growing rapidly.

The ONS report says:

“House prices have been increasing and first-time buyers are finding it more difficult to get on the property ladder, while home ownership among younger age groups generally has declined.”

The number of mortgages agreed in the UK is increasing, however, says the Council of Mortgage Lenders – with £205.6 billion loaned to house buyers across the UK in 2014, compared with £176bn loaned in 2013, before Help to Buy was launched.

The scheme has been more popular outside the capital than in London, where many first-time buyers may not be able to find or secure properties within the £600,000 upper limit.

Duncan Lewis Housing Solicitors

Duncan Lewis housing solicitors offer competitively priced conveyancing services to homebuyers and can help guide first-time buyers through the conveyancing process.

Duncan Lewis is also a leading firm of Legal Aid solicitors and can advise homeowners on issues such as debt management and mortgage repossession.

Duncan Lewis provides housing law advice to social housing tenants and rental tenants, including advice on Local Authority housing, Landlord & Tenant disputes, disrepair of rented property, housing possession and unlawful eviction.

For expert legal advice on housing, call Duncan Lewis housing solicitors on 020 7923 4020.

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