Why is homeownership for 25–45 year-olds declining?

Homeownership rates for 25–45 year olds is declining, according to the English Housing Survey.

Figures from ten years ago show that 72% of 34–55 year olds and 57% of 25–34 year old owned their own home. These percentages have gone down to 52% and 37% respectively.

Despite this, the number of people who own their home — owner occupation rates — has remained the same for the fourth consecutive year. Around 63% of the population own property.

Of owner-occupiers the composition of the group has changed — there are more outright owners while the proportion of those buying with a mortgage is down.

In 2016–17, 34% of households were outright owners while 28% were mortgagors. Since 2013–14 there have been more outright owners than mortgagors, and the proportion of mortgagors has declined, from 31% of households in 2013–14 to 28% in 2016–17.

In 2006–07, about three quarters (72%) of those aged 35–44 were owner occupiers. By 2016–17, this had fallen to half (52%).

While owner occupation remains the most prevalent tenure for this age group, there has been a considerable rise in the proportion of 35–44 year olds in the private rented sector, from 11% to 29%.

HiP comments: While this number suggests there is stability in the market, the 25–45-year-old demographic shows otherwise.

The growing number of ageing owner occupiers are in stark relief to the younger generation who are finding the current market tough to penetrate.

With extremely difficult processes, high standards and nigh-on impossible loops to jump through, homeownership for many is a pipe dream. The property market is a closed loop and is shutting out millions of UK residents.

While the government has been to blame for not helping this generation when it comes to buying homes, there’s a whole lot more to the problem than having more affordable houses.

The system is unfairly structured. What HiP seeks to reorganise is the 217 trillion dollar global property market which is currently in the grips of an antiquated and centralised closed-loop financial system that locks single buyers into financing agreements with single lenders.

HiP Interactive Property uses blockchain technology to provide the world’s first decentralised debt and equity exchange and a marketplace of financing solutions and investment funds powered by smart contracts.

A new platform which turns your equity into a currency and turns your property into a bank account.

A new form of financial freedom which unlocks the closed loop and makes the property market accessible for everyone to participate in.

HiP will help first time buyers get into the property they desire based on affordability through investment potential rather than their personal credit rating.