The number of young adults on middle incomes who own their own home has tumbled in the last twenty years, research shows.
Property prices have risen faster than incomes, leading to more young adults (those aged between 25 to 34) renting for longer.
A report from the Institute of Fiscal Studies (IFS) shows that in the mid-1990s, 65% of young adults on middle incomes owned their own home. This compares with 2015-16, where only 27% of those in the same group own their own home.
The research also revealed that home ownership among young adults has fallen throughout the UK, though numbers have fallen most dramatically in the south-east of England.
These numbers reflect the reality that average house prices in the UK, especially in London, are disproportionately higher than the incomes of young adults.
Research Economist at the IFS, Andrew Hood, said: “Home ownership among young adults has collapsed over the past 20 years, particularly for those on middle incomes. For that group, their chances of owning their own home have fallen from two in three in the mid-1990s to just one in four today”.
In summarising the reason for this, Hood said: “house prices have risen around seven times faster in real terms than the incomes of young adults over the last two decades”.
Though the figures paint a gloomy picture for young adults who want to own their own home, the government is pushing forward measures which support the ability for young adults to climb onto the property ladder, including the abolition of stamp duty for first-time buyers up to a certain price point.
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