For 25-year-olds, rates of homeownership have dropped by over half in the last two decades, according the recent figures.
The new data from the Local Government Association (LGA) indicated that just 20% of those aged 25 own their home today, compared to almost half (46%) twenty years ago.
As housing access is continually being reserved for future generations, the LGA state that properties for social or affordable rent are essential, in order to assist more families save up for a deposit to eventually buy a home.
34% of private renters’ total household income is now spent on rent, with a 29% proportion being spent by social and affordable renters, according to Savills’ analysis for the LGA. When deducting state financial support, this figure rises to 51.5% of income for private renters and 41.7% for social.
These figures can be compared to the average 18% of total household income which homeowners pay on their mortgage.
On average however, the price of a home is now 7.9 times the average earnings with the average deposit size being 62% of annual income, a figure which in London has risen to 131%.
Access to some kind of affordable housing will be required by a minimum of 3.98 million working people according to previous LGA findings, regardless of whether full employment is reached by 2024.
As well as boosting home ownership through the building of more social rented homes, an increased effort to grow the incomes of those requiring affordable home access is needed. Council leaders also believe that older people are in urgent need of better housing.
74% of projected household growth between 2008 and 2039 will be made up of homes with someone aged 65 or older.
Commenting on the data was Councillor Martin Tett. The LGA housing spokesman mentioned the complex nature of the housing crisis and the need to look beyond housebuilding:
“Our figures show just how wide the generational home ownership gap is in this country. A shortage of houses is a top concern for people as homes are too often unavailable, unaffordable and not appropriate for the different needs in our communities.
“The housing crisis is complex and is forcing difficult choices on families, distorting places, and hampering growth. But there is a huge opportunity, as investment in building the right homes in the right places has massive wider benefits for people and places.
“There is no silver bullet and everyone must come together to meet the diverse housing needs in our villages, towns and cities. The Government’s Housing White Paper is an opportunity to boost housing supply and affordability. It must recognise that a renaissance in housebuilding by councils will be crucial to helping ensure the mix of homes to rent and buy that are affordable for those people that need them.
“This means powers and funding given to councils to replace sold homes and reinvest in building more of the genuinely affordable homes our communities desperately need.
“But our focus is beyond just bricks and mortar. The Housing Commission sets out how council housebuilding can help deliver homes but also help families boost their household incomes, create prosperous and successful places, and improve the health and quality of life for our ageing population.”