Research by the Institute of Fiscal Studies has found young adults are less likely to own a home than ever before. The decline in ownership is most significant amongst individuals between 25 and 34 due to average house prices increasing by 152 percent.
The number of home owning young adults has fallen by more than half, from 65 percent to 27 percent.
Figures from the English Housing Survey have highlighted that the rental sector has grown significantly. Additionally, there has been a considerable increase in the proportion of 35-44 year olds in the private rented sector, from 11 percent in 2006/7 to 29 percent in 2016/17.
Alejandro Artacho, chief executive and co-founder of property search firm, Spotahome, said the increasingly difficult task for young adults to get onto the property ladder was "driving the growth of the rental market. Renting is now becoming the go-to accommodation option for many people.”
“Another challenge that renters face is the continued increase in the average rental asking price. The average rent is currently £1,280 per month, a significant chunk of the average salary. This makes it difficult for the average person to save and get a foot on the property ladder."
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