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