Young peo­ple are now less likely than ever be­fore to own their home

The Oban Times - - Property -

Whether it is be­cause a lack of avail­able homes, the un­af­ford­abil­ity of prop­erty or the rise in peo­ple who just want to live in the pri­vate rented sec­tor (PRS), it’s no se­cret that the past few years have seen a rise in the num­ber tenants.

With more than five mil­lion pri­vate tenants now na­tion­wide, the rental mar­ket has be­come one of the strong­est the prop­erty sec­tor has to of­fer. And new data shows it is young peo­ple in the mar­ket in par­tic­u­lar who are mak­ing it so pop­u­lar at present.

Ac­cord­ing to data re­leased by the Lo­cal Gov­ern­ment As­so­ci­a­tion (LGA), over the past 20 years, there has been a sig­nif­i­cant de­cline in the vol­ume of younger peo­ple choos­ing to buy a home, with fewer than half of that de­mo­graphic own­ing than did two decades ago. The re­search shows that in 1997, as many as 46 per cent of peo­ple aged 25 owned the prop­erty they lived in.

How­ever, this has di­min­ished in the 20 years since, and now only 20 per cent of peo­ple of that age own their home.

This is a sit­u­a­tion that has oc­curred for a num­ber of dif­fer­ent rea­sons.

A grow­ing num­ber of young peo­ple are now liv­ing in the rental mar­ket be­cause they want to, rather than be­cause they have to.

And it’s not just young peo­ple that the re­search showed are now less likely to own a home. Ac­cord­ing to the data, since 2008, the num­ber of tenants has risen by 5.1 per cent na­tion­wide, while at the same time, the num­ber of home­own­ers has fallen by 4.4 per cent.

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