Over the past few years we have seen a decline in home ownership for younger people, mainly due to the increasing size of mortgage deposits required. According to the ONS, Office of National Statistics in 1991, 36% of 16-24 owned their home compared to 10% in 2012, whilst the fall for 35-44 year olds has dropped from 78% to 64%.
New research from the Dutch bank, ING shows that people who own their own home are generally happier than those who rent, and the amount of people having to rent in the UK is much higher than other parts of Europe.
They state that fewer than half the people renting in the UK are happy with their situation, compared to 80% of homeowners. They state that this is caused by the UK rental market being less developed than in other parts of Europe, where people feel more secure when renting, as rental periods are normally for a longer duration as well as offering a larger choice of properties to rent.
Ian Bright the UK senior economist at ING stated: ‘The rate of house construction is the lowest in Europe, which results in a persistent mismatch between levels of supply and demand and the situation in London is particularly acute. All in all, many of those looking to buy a house are left wondering if they will ever get on the housing ladder at all.’
However this does look to change, as according to the CML, the Council of Mortgage Lenders, first time buyers are now finding it easier to get onto the housing ladder as more and more lenders are requiring a smaller deposit, and are mortgage interest rates are at their lowest ever.
If you would like some help and advice about buying your first property then why not pop into your local branch of Intercounty, or give our team a call on 01279 655248, or check out the first-time buyers guide on our website which is packed full of handy hints and tips for first-time buyers.
Readers might also be interested in: First-time buyers are back in the market…