Is Property ownership by young people become hard?

[William Hull]

A report warning that young people are finding it harder to own a home than in the past. The report stated that 31 per cent of 25 to 29 year olds own their own home, compared to 63 per cent twenty five years ago. Also, the young are finding it increasingly difficult to secure a bank loan for home ownership, and are turning to their parents. 34% of first time buyers are now depending upon family loans, versus 20% seven years earlier. The study estimates this percentage to rise to 40% by 2029. The Commission's chairman sees this as an issue for the government to address. He feels that home ownership is a sign of upward mobility. The inability to own a home has negative impacts upon the social system. The government painted a less dire picture, noting a nine-year high in the total of buyers for the first time and starts in new home construction. The Commission has nevertheless urged the government to take action. The Commission recommended that the government build over three million new homes over the next ten years. The Commission argued that government could partially fund this effort by selling off some of its public property.

Key Takeaways:

• Young people don't have access to property ownership and that impedes social mobility
• Many people don't have enough resources and assets to put down for collateral or for a down payment
• Action by the government is necessary in order to increase the supply of housing properties

"Home ownership is increasingly out of reach for young people without “the bank of Mum and Dad”, a study warns today – demanding “radical action” from the Government."