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Home arrow News arrow Most young people in the UK say buying a home is beyond their means

Most young people in the UK say buying a home is beyond their means

Tuesday, 11 December 2012
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Buying a home is now beyond the reach of most young people in the UK and that those who rent feel far less attached to their local neighbourhood communities, according to a new report.

The analysis from think tank the Institute for Public Policy Research found that while 88% of young people aged 18 to 30 say they want to own their own home in the next 10 years, a majority believe it may be unattainable for them. More than half, 51%, of those currently renting from a private landlord said they would not be able to own.

Also some 22% who live in a house share, that is shared accommodation with people they didnt know before they moved in, said that their housing negatively affects their sense of safety and security. And one in five of 31 to 44 year olds without children said they were delaying starting a family because of a lack of affordable housing.
 
The report shows that by 2020, the total number of young people owning their own properties will decrease by approximately 1.1 million to 1.3 million. The number of people living with their parents in their 30s will grow by half a million and an additional 1.5million 18 to 30 year olds will live in the private rented sector.

IPPRҒs interviews with young people show that their housing circumstances have an impact on their levels of life satisfaction. It found that owning a home increases someones sense of belonging to a neighbourhood as much as simply living there without owning for 14 years.

For example, when controlling for all other variables, an individual who has lived in the same home for 20 years yet does not own it is likely to feel the same sense of neighbourhood belonging as someone who owns their home but has lived in it for just six years.

Young people spoke about wanting housing stability before having children, and delayed having children in the absence of secure housing. They said that they simply felt unsafe, living in areas they didnҒt want to, or with people they didnt know.

ґLast week Nick Boles the planning minister said we need to significantly increase levels of house building to meet the need for new homes. Hes right, but not just because of the economic benefits it would bring. Our analysis shows that the lack of houses is dragging young people down. We found it is stopping many of them from them building their careers and starting a family,Ғ said Dalia Ben-Galim, associate director at IPPR.

A huge majority of todayђs younger generation want to own their home, just as most of their parents have done. But the prospect is slipping ever further over the horizon. Insecure renting stops them from putting down roots, but it is also bad for society too. Our analysis finds that home ownership has a big effect on peoples sense of belonging to their neighbourhood,Ғ he explained.

Unless we increase supply, a decent secure home, whether to rent or buy, will remain out of reach for far too many young people, especially those who canђt rely on their parents for financial help, he added.

The report recommends reforming the planning system, providing stronger incentives to develop land creating new sources of investment to boost house building and reforms to the private rented sector such as creating family tenancies to offer greater security to families.


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