Young Adults Had To Shelve Homebuying Plans In 2020

A number of young adults had to scrap their plans to buy in 2020, as the number of mortgages available to those with a small deposit diminished, the How We Live study from Aviva found. Last year saw the market lockdown stop house moves in March. Once the market reopened the stamp duty holiday did more to help homemovers and investors than first-time buyers. Almost a third (29%) of under-25s and two fifths (39%) of 25–34-year-olds had their home buying plans thwarted. Meanwhile seven in 10 (69%) potential first-time buyers rethought their homebuying plans. Read more on Property Wire.

https://www.propertywire.com/news/lots-of-young-adults-had-to-shelve-homebuying-plans-in-2020/

Young Adult Carers' Housing Needs Still Overlooked

The housing needs of young adult carers are still being overlooked, according to a review by education and training think-tank the Learning & Work Institute. The institute warns that "unsustainable caring arrangements and breakdowns in family relationships" combined with a general shortage of housing options means some young adult carers are living in situations "which have a serious impact on their physical, emotional and mental health and wellbeing".  Despite this, "young adult carers do not appear to be recognised as a group requiring specific housing-related support," the policy review concludes. There is also no specific data on the extent of homelessness among the group. Read more on the Children & Young People Now website.

https://www.cypnow.co.uk/cyp/news/2007132/young-adult-carers-housing-needs-still-overlooked

Young People With Deposits Still Cannot Buy Homes

About 40% of young adults cannot afford to buy one of the cheapest homes in their area even with a 10% deposit, according to a new research. The Institute for Fiscal Studies said house prices in England have risen by 173% over two decades. But average pay for 25-34 year-olds has grown by just 19% over the same period. In 1996, 93% of those with a deposit who borrowed four and a half times their salary could purchase a home but that fell to 61% in 2016. The IFS also said that higher rental costs - up from an average £140 a week to £200 a week in England - have "reduced the purchasing power of young adults' incomes" and made it harder to save for a deposit. Read more on the BBC website.

https://www.bbc.co.uk/news/business-45776289

The Decline Of Homeownership Among Young Adults

The decline in the homeownership rate of young adults in Great Britain is an issue that has risen to the top of the political agenda. In a briefing note, the Institute for Fiscal Studies finds;

·         young adults are significantly less likely to own a home at a given age than those born five or ten years earlier

·         falls in homeownership have been sharpest for young adults with middle incomes.

·         key reason for the decline is the sharp rise in house prices relative to incomes

·         Young adults from more disadvantaged backgrounds are less likely to own their home

Download the briefing note from the IFS website.

https://www.ifs.org.uk/uploads/publications/bns/BN224.pdf

Fifth Of Adults Live With Parents Until They're At Least 26

As the housing crisis bites, a fifth of young adults are staying in the family home until they are at least 26, and the same proportion are not paying a penny towards their keep. A survey by Nationwide found that the proportion of adults living at home varied around the country, from just under 9% in the east Midlands, to more than double that in London, where house prices and rents are highest. While many around the country contributed financially, it found that 20% were paying nothing at all. Young adults are being squeezed by low wages and rents which have hit record highs, while those who want to buy a property are finding the monthly cost of renting is preventing them saving enough to get on the housing ladder. Read more on the Guardian website.

Housing Crisis Will Halve Number of Young Homeowners in Five Years

The number of young adults able to buy homes could fall nearly 50% within five years unless the government addresses the housing shortage, a report has claimed. Over the past decade, home ownership among 25-34-year-olds has dropped by a third, from 1.8m to 1.2m, and analysis by the housing charity Shelter suggests that if current trends continue, the number of young homeowners will drop to about 616,600 by the end of this parliament. This would mean that less than 20% in that age group would have made it on to the property ladder, compared with nearly 60% a decade ago. Read more on the Guardian website.