Rise in number of young people buying homes

January 30, 2020 by Mark

Home owners

New figures released by the government reveal that the number of young people who have become homeowners has risen, reversing a 10-year plus trend.

The most recent English Housing Survey indicates that, among people in the 25 to 34 age range, the level of home ownership stands at 41%. This follows a period from 2004-14 when the percentage of people in this bracket who owned their own homes fell to 36%. However, although the number of young homeowners has risen is positive, there is still some way to go before it hits the 59% high of the period before 2004.

Furthermore, it is balanced out by the fact that the survey also revealed that there was a drop in the number of young people who bought their first home last year. The number for 2017-18 was 785,000, but it fell to 727,000 during 2018-19.

Speaking to Financial Reporter, Project Etopia founder Joseph Daniels stated that the numbers of young people able to afford to buy was still a real concern, due to property prices, but argued that there was at least evidence of an improvement. He went on to add:

“This points to a welcome softening in affordability issues but much more progress needs to be made. It will take considerable time and momentum until owner occupancy among younger people returns to the 59% seen in 2003-04.”

The tough housing market for young first-time buyers makes the guidance that mortgage advisors with CeMAP training are able to offer especially vital.