Posts with tag: young first time buyers

Amount of Under-35s with Own Property has Halved in 20 Years

Published On: January 23, 2015 at 11:11 am


Categories: Property News

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The amount of homeowners under 35-years-old has fallen significantly in the last two decades, as first time buyers cannot get onto the property ladder.

Research from the Office for National Statistics (ONS) indicates that homeownership has around halved for young people and only risen for pensioners. In 1991, one in three 16-24-year-olds owned their own home. By 2011, this figure had dropped to only one in ten.1

The number of 25-34-year-old homeowners has also decreased massively, from two-thirds to less than half.1

Even older age groups cannot save for deposits or get mortgages, says the ONS. Between 1991-2011, the amount of homeowners aged 35-44 dropped from three-quarters to two-thirds. There was also a small decline for those aged 45-64.1

However, homeownership rose for over-65s during the same timeframe, increasing from just over half to around three-quarters.1

The ONS believes that a contributing factor behind the amount of young buyers is the increase in deposit values needed for a mortgage. This is due to rising house prices and stricter lending criteria, which have made it more difficult to gain a loan with a small deposit.

Amount of Under-35s with Own Property has Halved in 20 Years

Amount of Under-35s with Own Property has Halved in 20 Years

Additionally, house building has been decreasing since 1980, especially since the recession. Therefore, the housing stock has been pressured, and prices have grown.

The ONS’s report states: “House prices have been increasing and first time buyers are finding it more difficult to get on the property ladder, while homeownership among younger age groups generally has declined.”1

Although it has been hard for young buyers, prospects seem to be improving. Separate findings reveal that over 300,000 people entered the housing market last year.1

The study, by Halifax, says that in 2014, the highest number of first time buyers stepped onto the property ladder since 2007.1

The Council of Mortgage Lenders (CML) also found that around £205.6 billion worth of mortgages were approved last year, to all types of borrowers. This is the highest level since 2008.1

The total value of mortgages granted in 2014 was 17% higher than in 2013, when £176 billion worth of loans were provided.1

Economist at the CML, Bob Pannell, says that the number of first time buyers is a “key driver” of the market recovery last year. He says that it is still a “far cry from the half million that we might regard as normal”, but it is heading in the right direction.1


Aspiring Buyers Stuck Renting

Published On: May 24, 2012 at 11:10 am


Categories: Property News

Tags: ,,

Demand for high-value deposits are leading to a number of young couples feeling trapped in rental accommodation, according to research from search website MyVoucherCodes.

Aspiring Buyers Stuck Renting

Aspiring Buyers Stuck Renting

Their research suggests that a growing number of young co-habitants are searching for property requiring only a 5% deposit.


MyVouchercode surveyed a total of 1,672 21-25 year olds that have been in a co-habiting relationship in rental accommodation for a minimum of two years. Of the couples questioned, 76% replied that they felt stuck in the rental market.[1] The same survey suggested that young couples spend an average of £6,900 per year on rent.

On average, the survey suggests that young couples pay around £575 per month. Positively, when asked if their rent had increased since moving in, 64% said that it had not.[1]

Taking into account that all respondents have been living in the same accommodation for at least two years, the survey suggests that average young couples have spent around £13,800 on rent so far.


As part of the research, the young couples were asked when they thought they would be in a position to purchase their own home. The most common reply was said to be, in at least ten years time. Respondents were also asked if they had managed to start saving for a deposit. A worrying 69% replied that they have not yet started to save.[1]

Mark Pearson, founder of the MyVoucherCode website, said that it is now “harder than ever for young people to get on to the property ladder.”[1] He went on to say: “Even though house prices are now fairly low, rent remains high and once you’re caught in the rental market, it can be incredibly difficult to get out.”[1]

Pearson urged young couples to seek professional advice to take advantage of some of the assistance on offer to them. He said: “There are plenty of schemes around at the moment which are aimed towards first time buyers, such as the NewBuy mortgage scheme, so people should definitely be looking into their options. Rent is dead money.”[1]