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.
Source: Mortgage Strategy
Sam: 23rd Dec 2016 04:00:00
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