Those in their 20s and 30s in the UK will own half as many properties in their lives as their parents, research has found.
This age group will own an average of 1.7 houses in their lifetime, compared to 3.2 for the over-50s. These figures were revealed by a study from LV= home insurance, who also discovered that a third of homeowners are living in homes that are too small for them but they cannot upsize.1
Around a quarter of survey respondents said that they are unable to save up for a deposit on a bigger house, and a sixth are waiting for property prices to fall before even considering moving.1
Experts say that rising prices, which have caused higher Stamp Duty, legal fees and estate agent costs, as well as a housing shortage and harsher mortgage lending are to blame.
Lots of families are staying in their homes, but deciding to extend. Moving house has become so difficult that many respondents say they are in their forever home, including one in five of those in their 30s.1
Those in Their 30s Might Never Move House Again
A different report revealed that the affordability of properties in UK cities has worsened over the past year and is currently at levels last found in 2009. The typical price is now over six times the average annual income.
LV=’s Selwyn Fernandes says: “While owning your own home was achievable for the previous generation, it is an impossible dream for many today. Rising house prices and strict lending criteria are now not only preventing people from buying their own home, but they are also stopping many homeowners from moving, forcing them to modify their homes instead.”1
Paula Higgins from the HomeOwners Alliance, also comments: “This survey suggests many are stuck in homes which may be unsuitable because they cannot afford to move.
“In different stages of your lives, you have different needs. You may need to move closer to your place of work, or to good schools, or nearer to family. You may want more green space or a more adaptable home. But lots of people are finding they are stuck in their first homes, which they struggled to afford in the first place.
“Transaction costs, changes to mortgage lending criteria and, critically, a woeful lack of new homes being built puts homeownership, and moving up the ladder, out of the reach of many.”1
The average property price in cities has increased from £182,000 to £195,000 between 2014-2015.1
Lloyds Bank found that Oxford is the least affordable city in the UK, followed by Winchester, Cambridge, Chichester, Brighton and Hove, Bath, and London.
The most affordable is Stirling in Scotland, with Londonderry in Northern Ireland closely following. Just behind are Lancaster, Bradford, and Hereford.
The highest house price growth since 2005 is in Aberdeen, due to their sharp property boom. London has experienced the largest growth since 2010.
Lloyds Bank’s Andy Hulme concludes: “House price rises in the past two years have resulted in a deterioration in home affordability in the majority of UK cities, and generally widened the north-south affordability divide.”1