Young struggling to get onto property ladder
By |Published On: 22nd February 2016|

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Young struggling to get onto property ladder

By |Published On: 22nd February 2016|

This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.

Another report has underlined the notion that young people are becoming trapped in the rental market, due to spiralling house prices.

An investigation by the independent Social Market Foundation think tank has revealed that an extra 1.8 million people have been unable to get their foot on the property ladder since 2001.

Young struggle

The report shows that if home ownership levels among 25-34 year olds during 2016 remained the same as 2001, an additional 1.8 million people in this age group would now be owner-occupiers. Despite this, they are being faced with barriers in getting onto the ladder due to high property values, tighter lending criteria and difficulties in saving for a deposit.

Data from the investigation underlines a lack of housing supply as the most prominent factor in the lack of young homeowners. Results indicate that Britan will see a shortfall of nearly 1.3 million homes by 2026, if current supply levels and lack of growth remain constant over the same period.

In addition, the report looks at how the market could grow over the next decade and warns that supply could continue to come up short in the face of rising demand.

Young struggling to get onto property ladder

Young struggling to get onto property ladder


This follows results from a different survey released last week by the independent Resolution Foundation body, which indicated that home-ownership for young, working class households could slip to just one-in-ten by 2025.

Claiming crowdfunding could be used to boost savings of young, would-be buyers, the report also suggests that the supply of new homes could be increased by providing crowdfunded equity to small and medium-sized constructers.

Social Market Foundation economist Katie Evans, also the author of the report, said, ‘getting onto the housing ladder is becoming harder and harder for young people. Our failure to build enough homes means this problem threatens to stretch into the future. Property crowdfunding could be the means to tackle both demand and supply.’[1]




About the Author: Em Morley (she/they)

Em is the Content Marketing Manager for Just Landlords, with over five years of experience writing for insurance and property websites. Together with the knowledge and expertise of the Just Landlords underwriting team, Em aims to provide those in the property industry with helpful resources. When she’s not at her computer researching and writing property and insurance guides, you’ll find her exploring the British countryside, searching for geocaches.

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