For young people aged 25-to-34-years-olds, earning average salaries from £22,200 to £30,600 per annum, the chances of owning a home are down by more than halve in the past 20 years.
The shocking figures from the Institute for Fiscal Studies (IFS) illustrate the disparities between those of different generations and those from more and less affluent families. These figures show that due to population growth; lack of new homes; failure to replace social housing sold under right-to-buy and rising property prices the average first time buyer is now 30 years old and earning £41,000 per annum.
Figures from the Institute for Fiscal Studies (IFS) have revealed the following figures:
- Only 27% of 25-to-34-year-olds own a house
- Down from 65% in 1995
- House prices have risen 152% from 1995 – 2015
- While average family income has only increased 22% in this period
- House prices have increased 7 times faster than salaries in this period
- 90% of 25-to-34-year-olds face house prices of more than 4 times their income
- 40% of 25-to-34-year-olds face house prices of more than 10 times their income
- In London average houses cost 15.7 times annual incomes
- Only 25% of those born in the 1980s are homeowners by 27 years-old
- While 43% of those born in the 1970s owned homes by 27
- 43% of those whose parents are in high skilled jobs own homes
- Compared to 30% of those whose parents are in low skilled jobs