A study from Cambridge University predicts that current economic stagnation will have long-term repercussions for the potential homeowners of the future.
If the economy remains flat, a mere 27% will be in ‘mortgaged home ownership’ by 2025. The figure is presently 35%, a substantial drop from the 43% seen in 1993-94.
As a result, millions of young families throughout the UK are entering a market where renting is their only option. Falling wages and banks’ unwillingness to lend are impacting on families with children who have little or no money left at the end of each month to save for a deposit.
This has meant that the number of families renting over the past five years has rocketed by 86%.
Based on the report, the outlook for the next ten years will see the trend towards renting and away from ownership continuing.
Campbell Robb, chief executive of Shelter, the housing and homeless charity who co-commissioned the report, said that these findings highlight ‘what is fast becoming the new realities of our housing market in the current economic climate: home ownership continuing to fall while renting becomes a way of life for British families.