Number of young people buying new home plunges to record low
Figures reveal that just a fraction of the homes sold in June were to buyers aged between 18 and 30
Tuesday 22 July 2014
The number of young people buying a new home has plunged to a record low of 3 per cent, new figures have revealed.
Figures compiled by estate agents revealed that just a fraction of the homes sold in June were to buyers aged between 18 and 30.
The figure marks a steep fall from last August when the age group made up 12% of homebuyers.
It comes despite government efforts to stimulate home buying, particularly among young people, through the help to buy scheme.
Mark Hayward, managing director of the National Association of Estate Agents, which produced the research published in the Daily Mail, said: ‘Things are getting even tougher for first time buyers.’
In contrast, 48 per cent of homes sold in June were bought by 31-40 year olds, 39 per cent by 41-55 year olds and 10 per cent by those aged over 56.
Tougher borrowing rules, introduced by the Financial Conduct Authority in April, have been blamed for making it tougher for young people to get on the property ladder, with tough questions about outgoing expenses and employment history deterring some buyers.
Paula Higgins, chief executive of the Home Owners Alliance campaign group, said: ‘The door is closed to a generation. Young people feel so disenchanted that they are living in their childhood bedrooms when they are 35.’
Under the help to buy scheme, buyers can access a mortgage with just a 5 per cent deposit, and the government lending up to 20 per cent of the cost of a new build home, or use government guarantees to help purchase any property worth up to £600,000.
The scheme has come in for criticism for driving up prices, particularly in London and the south east, by driving up demand without helping supply.
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