Young People Crave Alternatives To Homeownership
Young people badly need better choices in how they rent, own or part own a home, and the nation’s infatuation with home ownership must be tempered. *ENDS*
Today’s Social Trends report from the Office of National Statistics showing that the percentage of under 30s buying a home with a mortgage fell dramatically in the last two years from 43 per cent to 29 per cent underlines this need for a better balance and choice.
The Chartered Institute of Housing (CIH) highlighted a similar trend in younger people turning away from home ownership in May 2009, and is now calling for the government in its pre-budget report to implement reforms to the private rented sector, proposed in the Rugg review in 2008, to improve quality, access, affordability, and supply, to help address the growing demands on that sector.
A YouGov survey commissioned by CIH in May 2009 suggested that only about one third (37 per cent) of 18-24 year olds think that home ownership is right for them. There was also evidence that many people are looking again at the issue of homeownership. The biggest change in attitudes came in the 25 to 34 age range with a 14 per cent reduction, from 83 per cent saying to own their own home was their ideal living situation before the credit crunch, compared to 69 per cent saying it is currently their ideal living situation.
Sarah Webb, CIH Chief Executive, said: "Looking to the long term we are concerned that current housing policy will continue to threaten the stability of our economy and strength of our communities until a better balance is found between home ownership and other forms of tenure such as private and social rented housing. People need a greater choice of places to live. The infatuation with home ownership and house price growth must be tempered. We need to talk less about housing as an investment, and more about ways to address waiting lists and overcrowding, ways to reduce housing as a polluter, and ways to close the gap between the number of homes being built and households being formed."
1. The Chartered Institute of Housing (CIH) is the professional body for people involved in housing and communities. We are a registered charity and not-for-profit organisation. We have a diverse and growing membership of over 22,000 – both in the public and private sectors – living and working in over 20 countries on five continents across the world. Our members work for local authorities, housing associations, Arms Length Management Organisations, Government bodies, educational establishments and the private sector. Many tenants and residents are also members. We exist to maximise the contribution that housing professionals make to the wellbeing of communities. Further information is available at: www.cih.org
2. The Office of National Statistics published Social Trends on 4 December. It is available online at http://www.statistics.gov.uk/pdfdir/c10st1209.pdf
3. A YouGov survey of 2,028 UK adults commissioned by the Chartered Institute of Housing revealed that 70 per cent of respondents said that they still believed homeownership to be a good long term investment; 14 per cent agreed that renting is cheaper and safer than home ownership; eight per cent said they were less likely to encourage their family to aspire to home ownership; four per cent said that they were not happy with their current housing arrangement and needed advice; and 56 per cent said that young people are particularly affected by the housing crisis.
77 per cent of respondents said that ownership was their ideal living situation before the recession, but 72 per cent said it was their ideal living situation in their current circumstances. This 5 percentage point difference equates to approximately 2.4million adults based on 5 per cent of the UK adult population (over 18s) of 47,864,400* (*source ONS mid 2007 estimates). Respondents in the 25-34 age group showed a 14 percentage point drop in preference for home ownership, with 83 per cent saying that home ownership was their ideal living situation before the recession and 69 per cent saying that home ownership was their ideal living situation in their current circumstances. In the 18-24 age group 37 per cent said that home ownership was their ideal living situation in their current circumstances.
The survey of 2,028 people throughout the UK, aged over 18, was undertaken between 19 and 21 May 2009 to look at the growing impact of the recession and credit crunch. The sample included homeowners, private renters and people living in social housing.
