Home Ownership at Record Low for Under 25s

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22nd December 2016 11:01 - Housing

According to new figures published today by the Local Government Association and Savills, home ownership among people aged under 25 has fallen to just one in five (20%)  - compared to almost half (46%) two decades ago.

In its report, the Local Government Association suggested that the Government needed to take action to tackle the shortage of affordable homes – including both those available to rent, and those available for purchase. Figures from the survey suggest that the average private-renter spends more than a third (34%) of their household income on rent, whilst people living in social and affordable rented properties spend approximately 29% of their household income on rent.

Notably, the figure for home owners fall dramatically – they spend less than a fifth (18%) of their household income on their mortgage on average. However, it should also be noted that the average deposit required to secure a mortgage is now almost two thirds of annual income (62% of annual income) and this rises to 131% in London.

The Government is due to launch a whitepaper tackling the issue of housing in early 2017. In the meantime, a spokesman for the Department for Communities and Local Government said that 335,000 people had been helped in to homeownership since 2010, as a result of schemes backed by the Government in that time.


 

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