Under 50s will own fewer homes over their lifetime than their parents
The property market-place is changing fundamentally. Recent research has revealed that rising house prices and more strict lending criteria has meant that in Britain people are making fewer moves up the property ladder. Homeowners born after 1966 believe they will own fewer homes over their lifetime than their parents did.
HMRC data shows that the number of property sales in the UK has fallen by 21% since 2005 – 25% of of UK residents currently rent their home and of these 2.4 million previously owned a home but now rent. Of these many cite financial reasons including struggling to get a mortgage or to afford the deposit that they need. Added to this many homeowners are unable to afford to move to a bigger property and they've chosen to extend their homes and ‘stay put’.
Head of Property Lynne McCaffrey observes:
“Buying a property has always been a big decision but the changes to lending criteria and the general economic situation have had a significant impact on the home owning dreams of many people. Buying a house is about so much more than just bricks and mortar – a home is at the heart of family life and this research shows that property purchase is being delayed or in some cases avoided by extending a current home rather than incur the expense of moving.
“It’s quite a shift to read that almost one in five of people in their thirties now believe they are living in their ‘forever’ home.”
Content correct at time of publication.