According to a new analysis by Resolution Foundation, nine in ten under 35s on modest incomes could be frozen out of home ownership within a decade, with the 16-35 age group becoming permanent renters as property ownership increasingly becomes restricted to wealthy and older households.
Over 45s now account for three-quarters of all homeowners, while those aged 65 plus make up one-third of homeowners, up from less than one-quarter in 1998 – an increase of 43 per cent Meanwhile those aged 16-34 account for just 10 per cent of homeowners, down from 19 per cent in 1998, a 49 per cent reduction.
Matt Whittaker, chief economist at the Resolution Foundation, said the findings highlight how much the housing landscape for young, working people on modest incomes has changed. Meanwhile those aged 16-34 account for just 10 per cent of homeowners, down from 19 per cent in 1998, a 49 per cent reduction. 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, we can expect home ownership to be available to fewer than one-in-ten by the end of the next decade.”
The Resolution Foundation’s analysis, which will be published early next week in a report titled Living Standards 2016, shows that home ownership among under-35s from modest income working households has plummeted, from 57 per cent in 1998 to just 25 per cent.
Meanwhile, levels of private renting have more than doubled, from 22 per cent to 53 per cent.
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