More want to be home owners, but young people postpone plans

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A record number of Britons want to be homeowners in the long term but many younger people are putting immediate plans to buy on hold, according to research from the Council of Mortgage Lenders.

About 85 per cent of people said they hoped to be living in their own property 10 years from now, the highest level since the CML started carrying out the research in 1975. But there has been a dip in the proportion of who hope to be living in their own property in two years' time, with only 76 per cent wanting to do so, compared with 78 per cent three years ago.

The CML said the fall reflected a much lower appetite for home-ownership in the near future among younger people. Only 42 per cent of people aged between 18 and 24 said they wanted to own their own home within two years, despite the fact that this age group was most likely to want to live in their own property in 10 years' time at 88 per cent.

The report coincided with research from LSL Property Services showing that landlords increased rents in August for the seventh month in a row, imposing the steepest increases since September 2008. The average cost of renting a home in the UK rose by 1.4 per cent during the month to £686. The rise, the biggest monthly increase since August last year, is being driven by a shortage of properties to rent as more people put plans to buy on hold.