If it feels like you’re trapped in an expensive houseshare with little hope of getting on the “property ladder,” you’re not alone.
A new survey conducted by Ipsos MORI has revealed that far fewer young people own a home than the generation before them at the same point — and there’s little sign of things improving.
The research shows that 15-36 year olds, also known as Generation Y or Millennials, are getting stuck in the renters market when compared with members of Generation X (37-50 year olds) at the same age.
This chart shows that 23% fewer of today’s 27 year olds own a home compared to their Generation X counterparts when they were the same age in 1998. Almost 80% of people born between 1946-1964 owned homes at the same point in their lives.
Here’s the chart:
Homeless charity shelter called the findings “alarming,” according to the Daily Mail, and said the housing crisis had resulted in a “lifetime of instability” for millions of Britons.
Despite worries of the “property bubble” bursting, house prices in the UK show no signs of slowing. Average house value in the UK passed £300,000 for the first time ever in February, according to search engine Rightmove. This is £100,000 more than the average price was in 2006.
The situation is no better for people who are happy to rent long-term. The Guardian reports that average rent across the UK rose 4.8% in 2015, much higher than wage inflation which remained stagnant.
Campbell Robb, CEO of Shelter, said the situation had to be addressed:
“While we have made progress over the last 50 years, our current housing shortage means millions are facing a lifetime of instability and, understandably, people are giving up hope. But if our history tells us anything, it’s that together we can make things change. For the sake of future generations we cannot make this crisis someone else’s problem.”
He added that it was also tough on parents knowing their children would be worse off than them:
“We are seeing a generation of people now in their 50s or 60s who are looking at their children, and their children will be worse off than they are. That is the first generation since the Second World War that we are seeing that happen to, and that is primarily because of the housing market.”
In another Ipsos MORI survey we can see that Generation Y shares this opinion, with only 33% thinking they will be better off than their parents, the lowest of the last four generations:
Business Insider reported last week how one of Britain’s biggest property developers said an increase in property taxes designed to curtail the buy-to-let market would only harm social mobility and make it even harder for the first-time buyers to purchase a home.