Housing crisis hits young

HOME ownership among young people in England has fallen by a third in the last 20 years, according to research part-led by a York academic.

A new report from the Chartered Institute of Housing (CIH) showed 43 per cent of people aged between 25 and 34 owned their own home last year, down from 67 per in 1992.

Among those aged between 16 and 24, the figures dropped even further, from 39 per cent to 14 per cent in the space of two decades.

The figures were collated from the Government’s Labour Force Surveys and have been analysed in the CIH’s UK Housing Review 2013, edited by Professor Steve Wilcox of the University of York and Professor Hal Pawson of Heriot-Watt University and produced in collaboration with housing organisation Orbit. It forms part of a new CIH campaign which is looking at the problems behind the UK housing crisis.

CIH chief executive Grainia Long said: “For millions of young people, the dream of home ownership remains just that, and the country’s chronic shortage of affordable homes to buy means they are being denied the same opportunities enjoyed by their parents and grandparents.

“In many parts of the country, rising demand in the private rented sector is pushing both rent and house prices ever higher, making it even harder for young people to save for a deposit, while the deposit they need to get a mortgage becomes even larger.”

Comments(7)

angelleb says...
9:30am Tue 5 Mar 13

Housing costs have only 2 main factors - SUPPLY and DEMAND.

SUPPLY of rental accommodation and the number of people looking for rental accommodation (DEMAND). The supply of rental housing is nothing the government can really do anything about as its too far in debt to build houses.

But when the population increases by 5 million purely from legal and illegal immigration then the demand outstrips supply which is why we have the unbelievable situation of rising house prices as well as rising rental prices during a recession/depression - this is UNPRECEDENTED.

How can you have property prices going up during a double/triple dip recession? Well because the bottom of the property ladder is being held up by property investors who can see the good returns from renting out cheap houses to people on low incomes.

The only way to stop rising rent prices is to hold back UNCONTROLLED MASS immigration and allow housing numbers to catch up through private house building until such a time as there are houses for immigrants to move into.

At the moment there are too many immigrants taking cash in hand jobs for less than the minimum wage and they make it work by living 10 to house. Do you think this is a good way for people in country to be living?

While it is true that Margaret Thatcher shouldn't have started the sell off of council houses, even the stock of council housing in the 80s couldn't have housed a fraction of the demand for social housing at the moment.

While we are in the EU we can't control our borders, lets put a stop to MASS immigration until we have caught up on housing who is already here and also provided the necessary health care and schools for them.

Vote UKIP

ReginaldBiscuit says...
10:39am Tue 5 Mar 13

@angelleb - Dude/Dudette, you have a valid point about uncontrolled migration but it is a global issue, not just a UK one. There's enough space on the planet for everyone but can there be enough food or are there enough resources to provide a quality life for all? UKIP is not an immigration magic bullet. There are bigger issues at stake here, the continuation of the human race in its present form is one to mention.

I suspect (but don't have enough knowledge to say for sure) that the housing shortage in this country has a number of weighted inputs, not just immigration, that are causing some of the issues highlighted in this story. You are born in the buff without a house or possessions. Nobody is born with an entitlement to own a house and let's face it, you can't take it with you so it isn't really yours anyway. Apes just need the basics, it's society with it's general lack of knowledge and propensity for greed that gives you the impression that you need more. A roof over your head can be built very cheaply indeed and you certainly don't need to build houses out of brick or in the style of regimented estates. The 'government' *laughs heartily* need to force house-builders to create cheap housing on a massive scale and it won't happen because in the long run it would affect private house prices by lowering them significantly because there would be less demand. There are other reasons as well, it's never just one but hey, haven't got all day.

I'm afraid the outlook for housing and house ownership is bleak. The 2008 financial crisis still rolls on unsolved 5 years after it happened. Three 1 in 10,000 year events which the financial models predicted was the given ratio for collapses happened that year because the mathematical models used in finance are wrong and there is no redundancy in the system for major outliers, events that shouldn't happen but as we saw in 2008, they did.

What I am saying is don't worry about immigration or housing, worry about groups of politicians masquerading the ability to fix a financial crisis that is unfixable. When all of this started, (remember Lehman Bros- they went bust & Northern Rock? they didn't go bust but should have been left to rot), nobody expected to be in the same situation 5 years down the road. If you're a UK citizen, I would be worried because here you are in 2013, nearly 60 months passed and the government still owes a massive debt and has a massive deficit. Eurocrats and our own politicians have simply been putting sticking plasters over a dyke. And guess what? Yes, it's going to happen again, and again, oh, and again. Basically, until things go a bit peculiar. The fall of the current roman empire so to speak.

Anyway, cheer up. By then, no one will give a toss about housing, there will be more pressing problems to deal with.

elliehick says...
11:58am Tue 5 Mar 13

I dont know much about politics, but what i do know - me and the hubby both work, have good wages and yet due to high rents and cost of living we cannot afford a deposit to buy our own house. It is the most frustrating thing we are dealing with at present in our financial affairs.....

Even AndyD says...
1:14pm Tue 5 Mar 13

ReginaldBiscuit wrote:
@angelleb - Dude/Dudette, you have a valid point about uncontrolled migration but it is a global issue, not just a UK one. There's enough space on the planet for everyone but can there be enough food or are there enough resources to provide a quality life for all? UKIP is not an immigration magic bullet. There are bigger issues at stake here, the continuation of the human race in its present form is one to mention.

I suspect (but don't have enough knowledge to say for sure) that the housing shortage in this country has a number of weighted inputs, not just immigration, that are causing some of the issues highlighted in this story. You are born in the buff without a house or possessions. Nobody is born with an entitlement to own a house and let's face it, you can't take it with you so it isn't really yours anyway. Apes just need the basics, it's society with it's general lack of knowledge and propensity for greed that gives you the impression that you need more. A roof over your head can be built very cheaply indeed and you certainly don't need to build houses out of brick or in the style of regimented estates. The 'government' *laughs heartily* need to force house-builders to create cheap housing on a massive scale and it won't happen because in the long run it would affect private house prices by lowering them significantly because there would be less demand. There are other reasons as well, it's never just one but hey, haven't got all day.

I'm afraid the outlook for housing and house ownership is bleak. The 2008 financial crisis still rolls on unsolved 5 years after it happened. Three 1 in 10,000 year events which the financial models predicted was the given ratio for collapses happened that year because the mathematical models used in finance are wrong and there is no redundancy in the system for major outliers, events that shouldn't happen but as we saw in 2008, they did.

What I am saying is don't worry about immigration or housing, worry about groups of politicians masquerading the ability to fix a financial crisis that is unfixable. When all of this started, (remember Lehman Bros- they went bust & Northern Rock? they didn't go bust but should have been left to rot), nobody expected to be in the same situation 5 years down the road. If you're a UK citizen, I would be worried because here you are in 2013, nearly 60 months passed and the government still owes a massive debt and has a massive deficit. Eurocrats and our own politicians have simply been putting sticking plasters over a dyke. And guess what? Yes, it's going to happen again, and again, oh, and again. Basically, until things go a bit peculiar. The fall of the current roman empire so to speak.

Anyway, cheer up. By then, no one will give a toss about housing, there will be more pressing problems to deal with.
Spot on - people have still to wake up to what a scary situation we are in. Take a casual look at the recent banking results if you want a clue. No money to bail them out twice.

Nations going bust is the next chapter and that might just be closer to home than people realise. Dark days - but that won't stop some busting blood vessels about green bin collections and which council member is getting subsidised rail travel. Talk about moving the deckchair whilst the ship is sinking.

Capt. Dobie says...
2:10pm Tue 5 Mar 13

ReginaldBiscuit- roger and afirmative to your last. Unless all debt is written off there is no fix. Is that gonna happen? Extremely unlikely...bankers bonuses to be 'only' 100%- 200% of annual salary? Sigh. RBS made no profits last year but had a £300Mn pot for bonuses...ahem.

elliehick- know where you're coming from, LOADS of my buddies are in the exact same boat. One couple got lucky and bought a house refurb project, but only 'cos they knew the guy selling it (family freind and occupant had passed away).

Rather than mow the lawn this wk end (not a euphemism), turn your garden into an allotment...we're gonna need the growing space...

RoseD says...
8:02pm Tue 5 Mar 13

Agree on all points except for our UKIP friend. Really, it won't get better and if you're upset now, wait til teeming MILLIONS start to swim ashore from countries that will be under water. What do you plan to do? Shoot them? The time has come (has been here for ages) to get sensible and serious about housing, food, water. I'm not holding my breath.

Housing: in Hampshire, councils have been voting to remove council tax reductions on EMPTY SECOND HOMES. Hello? CYC? is this Council on?

Same for Millionaire tax on houses and horror stories about little old ladies in too much house that was bought for 5 quid etc. Just raise the upper bands to reasonable levels. No reason at all that a penthouse in Sloane Sq should be in Band whatevs that has maxed out at £2000 a year.

Magicman! says...
2:30am Wed 6 Mar 13

2 main causes: selfish buy-to-letters grabbing up available housing stock to make a profit by renting it out, and this then causes the 2nd part which is less housing available so prices for what is there skyrockets.

With less people able to buy their first house, this then affects the ladder further up - as somebody wanting to upsize puts their house on the market but may find nobody available to buy it because all the houses on the 1st tier of the property ladder are now owned by buy-to-letters.

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