Over the last 20 years, the chances of 25-34 year olds owning a home have decreased drastically. We explain how circumstances have changed by looking at the situation back in 1995 compared to how it is now.
It is now a lot harder for young adults to get onto the property ladder, with housing prices increasing seven times faster than the incomes of young adults during this time. With the average house price rising 152% since 1995, in contrast to just a 27% rise in net family incomes for 25-34 year olds, showing why they now have just a 1 in 4 chance of owning their own home compared to a 2 in 3 chance back in 1995.
As a result of house price increases it's taking longer for buyers to save enough for a deposit so renting is an alternative option while saving. Since 2004, the number of households private renting has more than doubled to 4.5 million.
Despite it being a British dream to own your own home, there are a number of benefits to renting... it’s an easier and much quicker process, there is no risk of losing money if the price of the property goes down, you may actually be able to find a better house that you would not be able to buy as you cannot afford it and the landlord is the one responsible for repairs and renovations.
With the Government looking to address the situation and make the prospect of owning your own home for young adults closer to a reality, there has been nationwide investment into expanding the number of housing projects.
For those looking to invest in a property in Hull, the outlook could become a little brighter with a number of projects taking place within the city, including £3.5m development plan in place for new apartments to be built at the Fruit Market, as well as other projects taking place on the outskirts of the city and close to Queens Gardens which will affect the market. Keep an eye on the changes in first-time buyers and housing prices.
See what’s available with Garness Jones, you could find your next home here