Home ownership is increasingly becoming the preserve of older and wealthier households, says think-tank the Resolution Foundation, with only one in 10 young people likely to be on the property ladder in 2025.
With the over-45s now accounting for three-quarters of all home owners, according to its new report on living standards, the housing ladder is rapidly disappearing for most young working households on modest incomes,.
With homeownership plummeting from 57% in 1998 to just 25% today, modest income working households under-35 recorded especially sharp declines. However, in contrast, levels of private renting have more than doubled, from 22% to 53%. The biggest decline was for young families on modest incomes.
Up from less than one-quarter in 1998 – an increase of 43%, the analysis shows that those aged over 65 now account for around one-third of all homeowners, whilst on the other hand those aged 16 to 34 account for just 10% of homeowners, down from 19% in 1998 – a fall of 49%.
These figures show the extent to which the housing landscape facing young, working households on modest incomes has shifted in recent years. At the turn of the century, just over half of this group owned their own place; today it’s one-quarter. If that pace of decline continues, it can be expected home ownership to be available to fewer than one-in-ten by the end of the next decade.
Down to 13%, the number of younger modest income working households owning their own home in London has more than halved over the last decade, and if the trend continues, it would all but end by 2025, falling below one in 20.