Young people aged 22 to 29 years have become less likely to own their own home, with the proportion of home owners down by 10%, official figures show.
New data published by the Office for National Statistics (ONS) shows that the number in this age group owning a home fell from 37% in 2008 to 27% in 2017.
According to Ross Boyd, founder of the mortgage platform Dashly, it is a reminder of how hard it is now to save for a deposit for a first home.
‘For home ownership levels among those in their twenties to have fallen by 10% in less than a decade is a brutal reminder of the struggle young people face getting onto the property ladder,’ he said.
‘With house prices in so many areas of the country out of people’s reach, the transition from Generation Own to Generation Rent is accelerating by the day and for many young people today, monthly rental payments are often considerably more expensive than the equivalent mortgage payments would be,’ he pointed out.
‘Unless you’re fortunate enough to be able to cash a cheque from the Bank of Mum and Dad, finding the deposit required to buy a new home can be an insurmountable challenge, all the more so if you are paying off debt from university,’ he explained.
‘In just a decade, the dynamic of home ownership in the UK has changed irreversibly. If this is to end then something fundamental has to change, and mortgage lending itself has to evolve,’ he added.
It may have left many young people wondering if they can ever afford to buy a home, but Chrysanthy Pispinis of Post Office Money pointed out that research shows it is possible.
‘Our recent research has shown that 57% of all properties sold in the UK last year were in areas affordable for first time buyers. This highlights that opportunities can be found and committing to put away even a small amount each month can make a huge difference in the journey to buying their first home,’ she said.