Home ownership is a distant dream for many young adults

For many young people across the United Kingdom, the prospect of one day owning their own home has become a very distant dream. According to new research published by the Institute for Fiscal Studies, the chances of a young adult owning a home have more than halved over the past 20 years. A massive hike in house prices relative to income is primarily to blame and only 27 percent of 25-34 year olds earning between £22,200 and £30,600 a year owned their own home in 2016.

At regional level, London has experienced the greatest decline in home ownership among young people. In 1995-96, 47 percent of 25-34 year-olds owned their own home and by 2015-16, that had fallen dramatically to 20 percent. The North East and Cumbria has the highest rate of home ownership among young people, despite a decline of 10 percent over the past two decades.