Owning a home set to become a pipe dream for young workers on modest incomes. Over-45s now account for three-quarters of all home owners. The housing ladder is disappearing for most young working households on modest incomes. For this group home ownership is projected to be approaching just one-in-ten by 2025, according to new analysis to be published next week by the independent Resolution Foundation think tank.
While the biggest decline in young families owning homes is for those on modest incomes, it has also fallen for young households that are benefit dependent or on higher incomes. As a result home ownership is increasingly becoming the preserve of older and wealthier households.
The analysis finds that those aged 65+ now account for around one-third (32 per cent) of all homeowners, up from less than one-quarter (23 per cent) in 1998 – an increase of 43 per cent. In contrast, those aged 16-34 account for just 10 per cent of homeowners, down from 19 per cent in 1998 – a 49 per cent reduction.
The analysis shows that young (under-35) modest income working households (working-age households in the bottom half of the income distribution who are primarily in work) have recorded especially sharp declines, with homeownership plummeting from 57 per cent in 1998 to just 25 per cent. In contrast, levels of private renting have more than doubled, from 22 per cent to 53 per cent.
The position is starker still in London. The proportion of younger modest income working households owning their own home more than halved over the last decade, falling to just 13 per cent. If home ownership were to continue to decline at the same rate in the capital for this group, it would all but end by 2025, dropping below 1-in-20.
Younger modest income households in the capital are already more likely to live in social housing (17 per cent) than in their own place. But the predominant position is to rent privately, with 70 per cent of members of this group doing so – up from just 37 per cent in 2003.
Looking across low to middle income households of all ages, the research shows that just over half (55 per cent) own their home, one-quarter (27 per cent) rent privately and one-fifth (19 per cent) are in socially rented accommodation.
Nationally, homeownership has been falling slowly since the start of the century – following a steady increase from the 1950s onwards – and stands at around 63 per cent today.
Matt Whittaker, Chief Economist at the Resolution Foundation, said:
“Our findings highlight the extent to which the housing landscape facing young, working households on modest incomes has shifted in recent years. At the turn of the century, just over half of this group owned their own place; today it’s one-quarter. If that pace of decline continues, we can expect home ownership to be available to fewer than one-in-ten by the end of the next decade.
“With the average modest income household having to spend 22 years to raise the money needed for a typical first time buyer deposit – up from just 3 years in the mid-1990s – it’s no surprise that owning is increasingly a pipe dream for many.
“If we want to see an increase in working families being able to afford to buy, it is essential that the housing shortage is tackled by the Government. Schemes such as Help to Buy can only ever help a minority – often providing a leg-up to those who would eventually climb onto the housing ladder anyway. More than half of those benefiting from Help to Buy to date have household incomes in excess of £40,000. It is hard to imagine any way out of the home ownership crisis facing those on low to middle incomes that doesn’t involve significantly boosting house building.”
Change in tenure among low to middle income households aged under-35:
UK 1997-98 2013-14
A Good Look At How Homes Will Become More Energy Efficient Soon
Everyone always talks about ways they can save energy at home, but the tactics are old school. They’re only tweaking the way they do things at the moment. Sealing holes in your home isn’t exactly the next scientific breakthrough we’ve been waiting for.
There is some good news because technology is progressing quickly. Some tactics might not be brand new, but they’re becoming more popular. Here are a few things you should expect to see in homes all around the country within a few years.
1. The Rise Of Smart Windows
When you look at a window right now it’s just a pane of glass. In the future they’ll be controlled by microprocessors and sensors. They’ll change depending on the specific weather conditions directly outside.
If the sun disappears the shade will automatically adjust to let in more light. The exact opposite will happen when it’s sunny. These energy efficient windows will save everyone a huge amount of money.
2. A Better Way To Cool Roofs
If you wanted to cool a roof down today you would coat it with a material full of specialized pigments. This would allow roofs to deflect the sun and they’d absorb less heat in the process too.
Soon we’ll see the same thing being done, but it will be four times more effective. Roofs will never get too hot again. Anyone with a large roof is going to see a sharp decrease in their energy bills.
3. Low-E Windows Taking Over
It’s a mystery why these aren’t already extremely popular, but things are starting to change. Read low-E window replacement reviews and you’ll see everyone loves them because they’re extremely effective.
They’ll keep heat outside in summer or inside in winter. People don’t even have to buy new windows to enjoy the technology. All they’ll need is a low-E film to place over their current ones.
4. Magnets Will Cool Fridges
Refrigerators haven’t changed much in a very long time. They’re still using a vapor compression process that wastes energy while harming the environment. It won’t be long until they’ll be cooled using magnets instead.
The magnetocaloric effect is going to revolutionize cold food storage. The fluid these fridges are going to use will be water-based, which means the environment can rest easy and energy bills will drop.
5. Improving Our Current LEDs
Everyone who spent a lot of money on energy must have been very happy when LEDs became mainstream. Incandescent light bulbs belong in museums today because the new tech cut costs by up to 85 percent.
That doesn’t mean someone isn’t always trying to improve on an already great invention. The amount of lumens LEDs produce per watt isn’t great, but we’ve already found a way to increase it by 25 percent.
Maybe Homes Will Look Different Too
Do you think we’ll come up with new styles of homes that will take off? Surely it’s not out of the question. Everything inside homes seems to be changing for the better with each passing year. It’s going to continue doing so thanks to amazing inventors.
ShutterStock – Stock photo ID: 613912244
IEMA Urge Government’s Industrial Strategy Skills Overhaul To Adopt A “Long View Approach”
IEMA, in response to the launch of the Government’s Industrial Strategy Green Paper, have welcomed the focus on technical skills and education to boost “competence and capability” of tomorrow’s workforce.
Policy experts at the world’s leading professional association of Environment and Sustainability professionals has today welcomed Prime Minister Teresa May’s confirmation that an overhaul of technical education and skills will form a central part of the Plan for Britain – but warns the strategy must be one for the long term.
Martin Baxter, Chief Policy Advisor at IEMA said this morning that the approach and predicted investment in building a stronger technical skills portfolio to boost the UK’s productivity and economic resilience is positive, and presents an opportunity to drive the UK’s skills profile and commitment to sustainability outside of the EU.
Commenting on the launch of the Government’s Industrial Strategy Green Paper, Baxter said today:
“Government must use the Industrial Strategy as an opportunity to accelerate the UK’s transition to a low-carbon, resource efficient economy – one that is flexible and agile and which gives a progressive outlook for the UK’s future outside the EU.
We welcome the focus on skills and education, as it is vital that tomorrow’s workforce has the competence and capability to innovate and compete globally in high-value manufacturing and leading technology.
There is a real opportunity with the Industrial Strategy, and forthcoming 25 year Environment Plan and Carbon Emissions Reduction Plan, to set long-term economic and environmental outcomes which set the conditions to unlock investment, enhance natural capital and provide employment and export opportunities for UK business.
We will ensure that the Environment and Sustainability profession makes a positive contribution in responding to the Green Paper.”