View more on these topics

Home ownership rates among 25 year olds halved

Home ownership rates among 25 year olds have plummeted by more than half in 20 years, the Local Government Association has found.

Almost half (46 per cent) of all 25 year olds owned their home 20 years ago, analysis from LGA shows, while only 20 per cent of 25 year olds are on the housing ladder today.

Analysis for the LGA by estate agents Savills, reveals:

  • 6,550 social rented homes were built in 2015/16. This is a drop of 88 per cent from 20 years ago when 56,950 were built in 1995/96.
  • On average, private renters now pay 34 per cent of their total household income on rent and social and affordable renters pay 29 per cent. This rises to 51.5 per cent of incomes for private renters when deducting state financial support, and 41.7 per cent for social renters.
  • In comparison, homeowners pay an average of 18 per cent of their total household income on their mortgage, and those that own outright have no housing costs.
  • Average house prices are now at 7.9 times average earnings. The average size of a deposit needed to get a mortgage is 62 per cent of annual incomes, in London it is 131 per cent.

The LGA, which represents more than 370 councils in England and Wales, warns a drop in social and affordable rented homes is combining with rents rising above incomes to make it more and more difficult for people to get on the housing ladder.

As a result, the proportion of total homeowners of all ages across the country has fallen by 4.4 per cent since 2008 while private renters increased by 5.1 per cent.

Recommended

Parliament-Building-UK-London-700x450.jpg

Redfern Review calls for new body to tackle home ownership crisis

A political review into declining home ownership has called for an independent housing commission to increase the number of homes being built. The Redfern Review, published today, recommends that the commission champion the cause of long-term housing supply and work with the existing national infrastructure commission. The document says housing supply needs to be boosted […]

House-Keys-Mortgage-Estate-Agent-700.jpg

Home ownership levels crash to 30-year low

English home ownership has crashed to 64 per cent, its lowest level in 30 years, according to the Resolution Foundation. The think tank says home ownership hit its peak in 2003 at an average of 71 per cent of the population. The main reasons for the fall are that incomes have not kept pace with […]

Home-House-Monopoly-Money-Property-700x450.jpg

Taylor Wimpey launches investigation into home ownership

Taylor Wimpey chief executive Peter Redfern is launching a review into declining home ownership. The Redfern Review was announced last September at the Labour Party annual conference and will look for ways to prevent future drops in UK home ownership. The review was commissioned by Labour shadow cabinet minister for housing and planning John Healey. […]

Why prevention is better than cure

Quoting the famous adage, prevention is better than cure; there are many proactive benefits that can improve wellness in the workplace, decrease stress, increase staff morale and reduce absenteeism, as well as attracting and retaining employees of a higher standard. With a recent study showing that employees in Britain are working below peak productivity, preventative benefits can ensure you address potential health issues or causes of stress at their source and ensure productivity in the workplace remains at an optimum level. With this in mind, how are you using preventative benefits to help keep your workforce happy and healthy?