Only one in three people will be able to afford to buy their own homes in 15 years time unless house building increases, suggest figures released by the ODPM.
According to preliminary projections of the ODPM’s Survey of English Housing 2004/05, by 2026 the number of ‘thirty something couples’ who are able to afford to buy their own property will by a third, compared to half of couples today and two thirds of couples in the late 80s, unless more new homes are built.
Statistics suggest 71% of households are homeowners, yet the number of households under the age of 30 with mortgages has fallen from 40% to 36% between 2000 and 2004 whereas that figure was 46% 10 years ago.
Similarly, ODPM figures indicate 23% of first-time buyers now rely on gifts and family loans in order to afford a deposit, compared to just 4% twenty five years ago.
And over the last 30 years, the number of households has increased by over 30%, but the level of building of new homes has fallen by over 50%, with the situation worst in the South and East as for every seven new households, only four new homes are being built.
Latest research from the government is part of its drive to see social housing increase by 50% over the next three years and help more first-time buyers get on the housing ladder.
If you have any comments you would like to add to this story or would like to speak to its author about a similar subject, telephone Julie Henderson on 020 7968 4571 or email [email protected].IFAonline
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