HOME OWNERSHIP LEVELS FALL TO LOWEST LEVEL IN 30 YEARS
According to the findings of the Resolution Foundation, home ownership levels are now at 63.8%- the lowest level since 1986. We have seen a 7.2% drop in home ownership levels since the peak in 2003 when 71% of people owned their own homes.
The biggest drop was found in northern cities such as Leeds and Manchester. In the West Midlands the rate has fallen from 70.5% from when it was at its peak in 2005 to 59.3% as it stands.
This comes as a result of generation rent where younger people need to have more flexibility in where they live due to the huge increase in the amount of zero hour contracts being offered out by many employers. Zero hour contracts make it very hard for people to be accepted for a mortgage and also the slow growth in wages compared to the rate of growth of house prices make it very difficult to save for a mortgage.
If young people want to buy these days, they are generally reliant on the bank of mum and dad. A report published by the government last month showed that 27% of first time buyers had help from parents compared to 21% 20 years ago.
All in all, these figures show there is a real need for good quality rental housing stock on the market to keep up with demand.
If you are looking to dip your toe in the buy to let market and would like some advice, then please contact Laura Fiddes-Baron on 0121 445 7410 or email@example.com.