In the 10 years subsequent to the Global Financial Crash, home-ownership among Millennial’s has dropped by 10%. Between 2008 and the end of 2017 the percentage of 22-29 year olds who owned a house dropped from 37% to 27% the ONS has revealed.
53% also have no savings at all, up 12% from 10 years ago.
The increased cost of rent is also having an effect on those young people wishing to live by themselves.
Ross Boyd, founder of mortgage platform Dashly, said:
“To rub salt in the wound of many young people today, monthly rental payments are often considerably more expensive than the equivalent mortgage payments would be. This partly explains the increase in the number of people with nothing in a savings account. With inflation above target for so long, and rents so high, many young people have nothing left to put aside.”
Housing prices have dramatically outstripped inflation and wages.
Average house price in London:
1996: £79,000 in 2016
Now: £488,908 (518% increase).
Londoner’s average wage:
2016: £36,302 (47% increase)
Under the Conservatives, affordable house-building has fallen to a 24-year low. However,Theresa May has announced she will let councils borrow to invest in housing, a policy originally proposed by Labour, in an attempt to reverse such failure.
Labour have committed to building 1 million new affordable homes in 10 years and put in a new target to build 250, 000 new homes a year by 2022.
Labour councils across the country, build an average of nearly 1,000 more new homes than Conservative councils.
Analysis from Iwan Doherty- Editor in Chief
This is the reason Labour win so many young votes. The economy is totally rigged against Millennials and no other party has come close to offering an attempt at a solution to the housing crisis or the lack of savings among young people. The situation is dire and needs radical initiatives to fix it. Housing has become one of the biggest challenges facing my generation and we are being led into a political environment that is burdening us with the failures of our parents.
There needs to be a dramatic change in the housing market, it is getting to the stage where the majority of my generation will inherit not buy their first house, if they were lucky enough to grow up in a house owned by their parents. It is a complete mess and frankly, the government has done nothing to prevent the growing problem in the 40 years previous.
Theresa May’s decision to adopt Labour’s policy of allowing councils to borrow to buy housing is welcome but nowhere near enough.
Labour have some of the answers on the housing crisis Millennial’s face, if the Tory’s are serious about appealing to the youth vote, they could do worse than peaking at the housing section of the manifesto of the opposition.