Data compiled by the House of Commons reveals homeownership ratios by age have fallen for every group apart from one. Between 2011 and 2016, home ownership levels for 30-39 year olds fell most dramatically from 55.2% to 48.3%. The only age group to record an increase was the 70+ group where the ratio rose from 73.3% to 76.2%.
Home ownership amongst 25-year-olds has plummeted by more than half in the last 20 years according to new analysis from the Local Government Association. 46% of 25 year olds owned their home 20 years ago but now only 20% are on the housing ladder. Average house prices are now at 7.9 times average earnings. The average size of a deposit needed to get a mortgage is 62% of average annual income, rising to 131% in London.
Basement extensions are becoming more popular according to a study from Direct Line which reveals that planning applications for this type of work have risen by 9% (by 11% in London) in the past two years. There is a clear relationship between the regions which are seeing increases in applications to build basements and the average house price in that region, with London recording the most applications – 75% in 2015.
The UK has the highest property tax in the developed world according to the Organisation for Economic Cooperation and Development (OECD). Purchase tax (stamp duty in the UK), as well as commercial property taxation, insurance tax and capital gains accounted for 12.7% of the total UK tax burden in 2014 compared to an OECD average of 5.6%. Recent changes to the taxation of buy-to-let properties and second homes means that the UK figure will have worsened since the study was conducted.