UK renting has increased dramatically over the past 20 years after exponentially rising house prices have made it near impossible to purchase a home for the first time.
Darren Burnside, a bartender at a popular bar in Nottingham’s Lace Market, said: “I’m 32 and have been looking for a house since my mid-twenties, but because I don’t earn buckets of money, I have found it so hard to even look at getting a mortgage anywhere near where I work. Sometimes I think whether I’ll ever own my own home.”
This comes as a recent Office for National Statistics report revealed that an average house, as of February 2022, will set a buyer back almost £280,000.
House prices have continued to increase exponentially since the 2008 Financial Crisis in the UK and are predicted to continue increasing to around half a million pounds by 2035 according to Economic Geography Professor Paul Cheshire.
Many of those who do not currently own their own home are not likely to be in a position to buy until their mid thirties.
Most recent estimates from Office for National Statistics showed that over a ten year period between 2007 and 2017, there had been a 2.1 million increase in people renting privately in the UK.
Dylan Saxton, an estate agent for Nottinghamshire-based real estate agency Frank Innes, said: “we have definitely seen a fall in the amount of younger people looking to buy houses, currently it is a seller’s market which makes it harder for people to buy new homes anyway, let-alone looking to get your first one.
He continued: “it is not the best economic climate at the minute and with price rises in just about everything we need, buying a house is no different.”
There has also been a surge in the amount of people living back at their parents, with current statistics saying there are around 3.6 million 18-34 year olds who live at their parental home.
It is difficult to process such numbers and there are likely to be many varying external factors that come into play, however, the huge influx of those staying at home is likely to be down to financial stability.
Sometimes I thinkwhether I’ll ever own my own home.” – Darren Burnside, 31
Despite the high figures of those not owning their own property, the government have backed multiple schemes to help younger generations find accessible ways to get onto the property ladder.
Some websites include:
These sites have been purposely set up to help guider younger people who are looking to find their own personal space in the coming years.
It is not all negative either, whilst rent and housing prices have increased, there has also been a steady rise in the national minimum wage, with the latest change seeing an extra 82 pence being added, taking the current hourly rate to £9.18.
It is likely that we will continue to see a rise in the national minimum wage, however, the prices in relation to this will follow.
If you are looking to purchase your own home, or would like to know more about how to get onto the property ladder for the first time, your local bank will have more details on this.
Alternatively, you can visit here to read the MoneySuperMarket guide for first-time buyers.