Taylor Scott International News
Affordability issues mean that more young adults aged 20 to 34 in the UK are more likely to be sharing a home with their parents than any time since 1996, new research shows. There were 618,000 more young adults living with their parents in 2015 than in 1996 at 3.3 million compared with 2.7 million, according to the data from the Office of National Statistics (ONS). Nearly half of 20 to 24 year olds lived with their parents in 2015, compared with a fifth of 25 to 29 year olds. For 30 to 34 year olds, this figure was less than one in 10. The research shows that the percentage of young adult householders owning their home decreased from 55% in 1996 to 30% in 2015 for 25 to 29 year olds and from 68% to 46% for 30 to 34 year olds. The percentage of 25 to 34 year old householders renting their home has surpassed those who own their homes over the last decade. There has been a noticeable increase in renting since the early 2000s and the ONS says that this may be due to increased demand for rented housing as house prices increase and an increased supply of privately rented housing from a growing number of buy to let investors. The increase in renting has been largest for householders who are aged 20 to 24. In 2015 some 91% of householders aged 20 to 24 were living in rented accommodation; this is higher than all other age groups. Only 9% of 20 to 24 year old householders owned their homes either outright or with a mortgage or loan in 2015, down from 30% in 1996. Saving for a deposit is often seen as one of the biggest hurdles to home ownership and the report says that first time buyers’ deposits have increased from around 10% of the purchase price in 1996, to a peak of 27% in 2009. This was the height of the economic downturn, when mortgage lenders placed greater restrictions on the mortgage lending criteria used to assess applicants’ ability to afford a home loan. In recent years the size of deposits paid has fallen slightly but remained above 20% of the purchase price on average. The size of deposits paid by first time buyers has risen more than deposits paid by existing home owners. This is because prospective first time buyers who have smaller deposits saved were less likely to be approved for a mortgage, and therefore less likely to buy a home. That left only those with larger deposits who did buy their first home, which in turn pushed up the average deposit paid. Between 1971 and 1999, the amount paid for a house by first time buyers with a mortgage fluctuated between two and three times their annual income. After 2000, this ratio increased rapidly, driven by increasing house prices , reaching a peak of more than 4.5 times their annual income in 2004 and… Taylor Scott International
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