Home.co.uk
Home.co.uk

News: Dreams of home ownership set to be shattered

Britons are unrealistic about their chances of getting on the housing ladder, a report out today claims. And the older people are, the more unrealistic they become, it seems.

Propertyfinder.com asked over a 1000 people what their expected housing tenure would be at different points in their life. Among younger people, 57% expect to have a foot on the property ladder by the time they reach the 24-35 age bracket.  With 29yrs the average age of a first time buyer in 2006, this is the key home-buying age.  By the time they reach the age of 64, 95% of respondents expect to own their own home, while only one in twenty (5%) expect to be living in private or social rented housing.

But figures of actual housing tenure show how unrealistic these aspirations are.

 

To a large extent, people’s expectations are rooted in the past, said the report.  In 2001, 59% of 25-34 year olds were homeowners according to the census.  Since then, sharply rising house prices have rapidly eroded their ability to buy a home, but not their expectations of success.

Warren Bright, chief executive of propertyfinder.com said: “The desire to own a home remains deeply ingrained in the national psyche.  Neither profound social changes in the way we live, move and work, nor high house prices have diminished Britain’s appetite for bricks and mortar.” 

“But many people’s eyes are bigger than their wallets and they are likely to be disappointed.  Indeed people are more unrealistic about their long term likelihood of owning a home than about their immediate prospects.”

Given the lower levels of homeownership we are seeing in today’s younger population and even allowing for later inheritance to enable some to catch up, fewer people will be homeowners 30 years from now than they are today.

Renting in retirement

 “In future a smaller proportion of people will be homeowners than presently,” said Warren Bright. “Take retirees as an example.  We estimate that around 3.1 million of today’s over 30s who had expected to retire in their own homes will actually live out their golden years in rented accommodation.  Most of these people will find homes in the private rented sector.  This heralds a big change in the UK’s housing tenure and is good news for the burgeoning army of property investors who will see tenant demand extend beyond traditionally younger groups to become an option for the whole population.”

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