With soaring house prices, new research highlights, the number of people aged 20 to 34 unable to move out of their parent’s house is higher than ever before. With contributors such as the shortage of affordable properties and future home owners being shut out by overseas investors, now is the time to implement schemes to help out those unable to make their first move on the property ladder.
UK based charity ‘Shelter’ has revealed that the severe lack of affordable housing is the single biggest reason that so many young people cannot afford to ‘fly the nest’. According to their findings a quarter of all employed people between the ages of 20 to 34 are still living with their parents. The most extreme example of this happening is in the borough of Castle Point in Essex where 45 percent of the employed younger generation have become unable to live independently. Most people in this category say they cannot afford to take on a mortgage or find an affordable property to rent. According to research carried out by Halifax, the average home now costs £186,322, meaning buyers are forced to cough up a deposit of roughly £27,719.
Properties to rent is at a higher price than ever before with an average rental cost of £846 per month. This unfavourable spike in rental prices, confirms the fear potential homeowners have surrounding the prospects of saving enough money to get onto the property ladder. Homeowners forced to rent a property, are now even less likely to save enough money to get on the property ladder. The Labour party has acknowledged this by stating their plans to build at least 200,000 newhomes a year to help the struggling younger generation. Nearly 50,000 families in the capital are in temporary accommodation meaning more affordable housing has never been more necessary;
One reason many have been unable to find a property to make that initial jump from their childhood home is due to the number of foreign investors willing to pay thousands of pounds more than the asking price. Last year, only 32% of new homes in the capital were bought by those who intend to live in them. Free-Market organisation ‘Civitas’ is suggesting implementing a similar scheme used in Australia which ensures that no overseas buyers can buy a property unless they can prove that their investment will provide at least one more property to be built and added to the market. Such a scheme would ensure that there would be a constant supply of new, affordable homes becoming available regardless of the quantity of foreign investment.
With the lack of affordable housing and the ongoing increasing house prices, correct measures need to be taken to provide the future generation with reachable opportunities in property ownership. Ensuring that sufficient quantities of new homes are built with the correct legislation to prioritise potential home buyers, the market could become more welcoming to those looking to fly the nest and hopefully end this ‘clipped wing generation’.