Homeownership among 25 year olds halved in 20 years

Posted by Erika Bone in Mortgages on 5 January 2017 - Erika is a Credit Analyst at checkmyfile

Homeownership among 25 year olds has more than halved in the last 20 years, according to a survey conducted for the Local Government Association (LGA). The study carried out by Savilles the estate agents found that only 20% of 25 year olds now own a home of their own, compared to 46% in 1996.

Statistics that also came to light within the survey confirmed that private renters spend over a third of their household income on rent compared to homeowners, who only spend an average of 18% of their income on their mortgage. These figures point to the fact that young people are being doubly hit with high rental costs hindering their ability to save for a property of their own, coupled with the prohibitively large deposits needed to apply for a mortgage in the current economic climate.

The LGA states that social housing is vital to help young people and families save for a home and have called for a “renaissance” in house building by councils. The survey findings have been released to pre-empt a Government White Paper on Housing, due to be published in early January, and the LGA would like to see a number of new powers granted to councils to tackle the dearth of affordable housing. Measures suggested include the ability of councils to dictate to developers the number of affordable houses that are included in new building projects and to increase the borrowing potential for councils who want to build new affordable housing.

Responding to the survey’s findings, a spokesman for the Department for Communities and Local Government commented that, “we have halted the decline in homeownership with the number of first time buyers up nearly 60% and over 335’000 households have been helped into homeownership with government backed schemes since 2010. Our upcoming Housing White Paper will clearly set out how we plan to build the homes this country needs.”

Check Your Multi-Agency Credit Report

30 Day Free Trial

Last minute mortgage checks

When could a non-bankrupt person be considered bankrupt? When they’re buying a house.

Published on 17 Jan 2018 by Richard Catlin

Full Article

Guarantor loans can affect mortgage applications, lenders warn

Guarantor lenders are always keen to point out that you don’t need a credit report check to get their loan, just a friend or family member who has a good credit history and is able to act as a guarantor. For those with a poor credit rating, this type of loan provides a solution to a problem – they can afford the loan repayments but are unable to get credit due to prior adverse credit history.

Published on 9 Jan 2018 by Kelly Luff

Full Article

How your credit file could help you get a good mortgage deal

There have been plenty of reasons to get people thinking about making that first leap onto the property ladder in recent months, including Help to Buy schemes, the recent removal of stamp duty charges for about 95% of first time buyers and an increase in affordable houses being built.

Published on 29 Dec 2017 by Kiah Phillips

Full Article

The best credit score for a mortgage

A lot of customers come to checkmyfile because they are planning on applying for a mortgage – your credit report is, after all, the best place to start is it’s helpful on more than one occasion . But often the question is often asked: “what credit score will get me the mortgage I need for my dream home?”

Published on 16 Feb 2017 by Kelly Luff

Full Article

Housing Values Rise to 5.6 trillion

While housing prices have displayed a consistent rise over the past several years, according to a recent study conducted by Halifax, the total value of privately owned housing in the UK has exceeded £5.5 trillion for the first time.

Published on 14 Dec 2016 by Tom Magor

Full Article

First-time lenders can borrow against parent's home

In recent decades, the “bank of mum and dad” has increasingly become a cardinal resource for their offspring achieving independence and for first-time buyers attaining a foot on that all-important first rung of the property ladder.

Published on 9 Dec 2016 by Erika Bone

Full Article

Buy to let slows as mortgage rate offers begin to increase

In the last few years we have not only seen some historically low mortgage rates, but also a rush to make property investments. Now the tide may finally be turning, as lenders begin to increase their lowest mortgage rates, and buy-to-let figures drop in the wake of new regulations.

Published on 7 Dec 2016 by Kelly Luff

Full Article

Mortgage costs reach record low

The cost of obtaining a mortgage could be in reach for first-time buyers, as rates drop to a record low.

Published on 16 Nov 2016 by Simon Hadley

Full Article

Surge in House prices recorded in October

House Prices shot up in October, showing a monthly increase of 1.4%. This is according to Halifax’s house price index, which showed its largest monthly rise since March. The growth was well up on the 0.3% recorded by Halifax in September and is in contrast to the signs of a slowing housing market recorded in its index over the last 6 months.

Published on 10 Nov 2016 by Neil Greenhill

Full Article

Estate agents pay out as result of Ombudsman complaints

Estate agents have been warned that they need to raise their standards, as the Property Ombudsman had to step in to resolve more than 3,000 complaints in the last year.

Published on 7 Oct 2016 by Jasmin Stopford

Full Article
keyboard_arrow_left

keyboard_arrow_right

We have loads of great customer reviews