Just one third of 25 to 34-year-olds own their home today – compared to more than half of the same age group two decades ago. The figures, just revealed by the Institute for Fiscal Studies (IFS), show the huge discrepancy in the number of young people owning their own home compared to their parents generation and beyond.

The reason for this gap, say economists, is the fact that house prices have grown far higher than household incomes since 1995/96 when the study starts from. And actually, that increase is pretty massive at 125 per cent for house prices and a more 22 per cent increase for incomes. Is it any wonder today's young folk are struggling to get on the housing ladder?

Shared ownership can help bridge the current housing discrepancy

Of course figures like these are the reason companies like Property Booking exist – we make home ownership accessible and easy to understand for those who need it moste. Shared ownership is a means of bridging this home ownership gap by allowing individuals, couples and families to part-buy their home.  Not only is shared ownership far more affordable, it's also flexible.

That's because potential owners take out a mortgage for only the percentage of the house value they can afford (from 25 to 75 per cent) and pay a subsidised rent on the remainder. The idea being, that as the years go on the amount owned increases and rental payments correspondingly decrease.

Middle income households are worst faring compared to the past

Interestingly, further analysis of the IFS figures show that the biggest drop has been amongst 'middle income' young people. In 1995/96 around 65 per cent of this group were home owners compared to just 27 per cent in 2015/16. 'Middle earners' were individuals or couples with a take home pay if between £22.200 and £30,600.

Of that figure, 60 per cent had children and 75 per cent lived with a partner. Around 33 per cent had a degree.

When looked at as a whole, more middle earners have gone towards the lower end of earners, than the higher earner side. It's not surprising considering that it's not just house prices which have rocketed over the past two decades; the increase in utility bills reached almost crisis point a few years ago, while food costs have increased greatly – particularly within the past two years. Transport costs (train and bus travel) have also increased.

All these other rising costs means the chance of saving a whopping £20,000 deposit (at least) is as likely for today's young people as spotting a unicorn any time soon.

South East of England sees the biggest drop in young home owners

Although every region in the UK had seen a 10 per cent drop when it came to home ownership amongst the mid-20 to mid-30 age group, young people in the South East of England are particularly badly off when it comes to buying property - thanks to large house prices rises in that part of the country. It has meant that 50 per cent fewer is this age group now own their own home compared to two decades ago – 64 per cent compared to 32. 

Shared ownership offers a great opportunity to get on the housing ladder in these locations, with low deposits and a combined mortgage and subsidised rent.

 To see some of the fabulous new-build properties available as a shared ownership option, as well as further information on the government schemes, see Propertybooking.co.uk

Shared Ownership Benefits

• When buying a new home through a shared ownership scheme, you will own a part of your home, rather than paying rent with no stake in the ownership
• You only buy what you and we feel you can afford so you don't overstretch yourself financially.
• Shared ownership houses require a much lower deposit those compared to buying homes on the open market.
• Monthly mortgage and rent payments are almost always less than buying outright, and are often less than renting on the open market.

-ENDS-

Editors' Notes

About Property Booking

Launched in mid 2017, Property Booking is the UK's first shared ownership portal for first time buyers and the preferred online listing site for affordable home ownership providers.

From high profile city centre developments to traditional town and country family homes, brand new properties to resales, Property Booking listings provide detailed property information, eligibility tools and appointment booking facilities.

The Property Booking team brings together vast experience working within the affordable home ownership sector.

Central to Property Booking's approach is providing a seamless and easy step-by-step journey across every Property Booking touch point, because we are passionate about making shared ownership less complicated for the people who need it the most.

More information is available at http://www.propertybooking.co.uk

For further media information contact Lidia Facchinello at Full Comms Ltd:

lidia@fullcomms.co.uk

 020 7637 4909

07531 651 076  Email:  lidia@fullcomms.co.uk