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615: Young People - Do I Stand A Chance of Owning a Home

02-26-2018 team

In the last 20 years house prices have risen 152% in value whilst the incomes of the middle 20% of 25-35 years old has risen only 22%. This is the key reason why house ownership among the 25-35 years olds has plummeted from 63% in 1997 to 25% in 20 years. We can certainly understand how frustrating this is for young people – looking ever more likely to lead to a depressing lifetime of renting.  There are many socio-economic contributors to the lack of young people being able to or wanting to own a property, namely:




Need A Leg Up: What we will find in coming years is that – particularly in London – young people will be ever more reliant on a leg up from their parents to be able to buy a property.  Of course – if you have wealthy and generous parents, particualry those wanting to avoid inheritance tax buy gifting to either siblings or granddaughters-sons, you will be okay, but if you have poor renting parents that are also not encouraging you take any risks – your chance of buying a home before the age of 40 in southern England will be minimal.

Inflation All The Way: We envisage house prices to continue to rise as the value of Sterling drops and inflation continues in the range 3-5% per annum. Brexit will mean more inflation – the Bank of England may need to pump more printed currency into the economy to prevent a recession or financial collapse – and they will try and keep interest rates low to encourage businesses to invest and to prop up house prices. But these two things will continue to put pressure on inflation – particularly as oil prices rise. Even if house price inflation lags general inflation – it will still mean property ownership getting further out of reach of young people – the trend is set to worsen. Even the Buy-to-Let ISA, Help-to-Buy schemes and other initiates – including clobbering buy-to-let landlords with punitive-draconian taxes have not really helped the young – saddled with huge student debts, low earnings and poor earning growth prospects.

Our Steer for the Young – who are desparate to own their own property is as follows:

Other Lifestyle Things That Help:

Eventually – you will look back at your friends who spent all day on Facebook trying to polish up their profiles with expensive holidays snaps – quietly content that you are super wealthy asset rich in control of your financial destiny and making serious money from lodgers or even a small buy-to-let empire if you expand your interests. You need to be positive, save, invest, not be defeatist and find a way to buy a property by all means possible - get creative - and you will surprize yourself with how you achieve your goal. You need to write down an action plan as to how you achieve this goal - write it down now - then action the items - following things through - step by step. 

We hope this Newsletter has been helpful for young people looking to purchase their own properties, or for parents that want to encourage their offspring to take the plunge. If you have any queries or comments, please contact us on

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