"Generational home ownership gap" exposed: Proportion of 25-year-olds on housing ladder halves in 20 years

 
William Turvill
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The proportion of 25-year-olds on the housing ladder is 20 per cent currently, according to the LGA (Source: Getty)

Home ownership among 25-year-olds has fallen by more than half in the last two decades, new research shows.

Twenty years ago, some 46 per cent of all 25-year-olds owned their home, according to the Local Government Association (LGA).

Today, this proportion has fallen to 20 per cent.

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The research, carried out by state agent Savills, found private renters pay 34 per cent of their total household income on rent, while social and affordable renters pay 29 per cent.

In comparison, homeowners pay an average 18 per cent of their total household income on their mortgage, or pay no housing costs because they own outright.

The LGA said average house prices are now 7.9 times average earnings, while the average size of a deposit needed to get a mortgage is 62 per cent of annual income – or 131 per cent in London.

“Our figures show just how wide the generational home ownership gap is in this country,” said Martin Tett, a housing spokesman for the LGA, which represents 370 councils in England and Wales.

Read more: Home ownership in England has hit a 30-year low

“A shortage of houses is a top concern for people as homes are too often unavailable, unaffordable and not appropriate for the different needs in our communities.

“Our figures show just how wide the generational home ownership gap is in this country. A shortage of houses is a top concern for people as homes are too often unavailable, unaffordable and not appropriate for the different needs in our communities.”

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