Homeownership halves for ‘middle earners’ over two decade period
Recent research has revealed that homeownership among middle earners has more than halved over the last two decades.
According to data from the Institute for Fiscal Studies, the proportion of middle-income 25-34-year-olds who own a home has dropped from 65% in 1995-96 to 27% in 2015-16.
In respect of the data, those classed as middle earners have an annual income of around £22,000 to £30,000 and can either be part of a couple of by themselves.
The research found that over the twenty year period, the share of this demographic who own their own home has shifted closer to the percentage for the lower income group (8%), than that recorded for the higher income group (64%).
On a regional level, the most significant fall in homeownership for those aged 25 – 34 was in the South East; over the two-decade time frame, the share has dropped from 64% to 32%.
Whilst this fall seems steep, the research revealed that all regions saw a drop of at least 10%.
Commenting on the findings and the resulting consequences for 20-30-year-olds was Iona Bain. The founder of the Young Money Blog stated: “It is really hard to see how we can make this better when we are still seeing a huge demand for housing and that housing demand is not being met with the right number of houses.
“Individuals are having to decide for themselves: do I want to rent and have the flexibility but pay more for it, or do I want make a lot of difficult decisions to get on the property ladder sooner and potentially stay put for many, many years to come?”