Researchers have quashed the myth millennials don't want to own homes

Researchers have quashed the myth millennials don't want to own homes

The chances of a young British adult owning a home on a middle income have been halved in the past 20 years, said research released on Friday.

For almost 90 percent of this age group, average house prices are more than four times what they earn each year after tax, individually or together with a partner. While those on middle incomes have seen the largest fall in ownership rates, those in the top income bracket have been least affected.

The odds of a young adult earning an average pay packet owning their own home have "collapsed" in the last 20 years.

ONLY one in four middle earning young adults now own their own home - down from two in three two decades ago, research reveals today.

Home ownership among the middle income earners aged 25 to 34 has fallen from 65 percent two decades ago to 27 percent in 2015 and 2016, according to findings from the Institute for Fiscal Studies, reported Xinhua.

The IFS said young adults from wealthy backgrounds are now significantly more likely than others to own their own home.

Young adults today are much less likely to be home-owners than those born just five or 10 years earlier, the report found.

The average (mean) United Kingdom house price was 152% higher (2 ½ times as high) in 2015-16 than in 1995-96 after adjusting for inflation, but the average (mean) after-tax family income of 25 to 34 year olds grew by only 22% in real terms over those 20 years.

"Our conclusion is simply that increases in house prices relative to incomes of young adults can fully explain what's happened", said Andrew Hood, senior research economist at the IFS and one of the authors of the report.

The IFS study also comes as UK Finance figures showed that first-time buyer (FTB) numbers previous year reached the highest number since 2006, with 365,000 people getting on to the property ladder.

Wage growth failing to keep pace with house prices is being blamed for a "collapse" in home-ownership levels among young adults. But we want to go further and faster, and our ambitious plan backed by targeted investment will help even more people by delivering the homes that Britain needs for young families, key workers and those on low and middle incomes'.

But Labour's Shadow Housing Secretary John Healey blasted the Government's response.

The Government introduced the Help to Buy scheme in 2013 to bolster access to financial support for first-time buyers unable to pay large deposits, and scrapped stamp duty for nearly all first-time buyers in November's Budget. After nearly eight years of failure on housing, the Government is still failing to tackle the fundamental problems with our broken housing market.

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