Homeownership among 25-year-olds has fallen by more than 50% in the last 20 years, a new research has revealed.
The Local Government Association has stated that twenty years ago 46% of those aged 25 owned their home. Currently, this proportion sits at 20%.
The research by Savills found out that private renters pay 34% of their total household income on rent, social and affordable renters pay a total of 29%.
To put this into context, homeowners only spend an average of 18% of their salary on their mortgage, or nothing at all if they own it outright.
The LGA explained that average house prices are now 7.9 times average earnings, while the average size of the kind of deposit needed to get a mortgage is 62% of the annual income (or an impressive 131% if you’re trying to buy in London).
“Our figures show just how wide the generational home ownership gap is in this country,” said Martin Tett, a housing spokesman for the LGA, which represents 370 councils in England and Wales.
A shortage of houses is a top concern for people as homes are too often unavailable, unaffordable and not appropriate for the different needs in our communities.”
“Our figures show just how wide the generational home ownership gap is in this country. A shortage of houses is a top concern for people as homes are too often unavailable, unaffordable and not appropriate for the different needs in our communities.”