In the UK, approximately 1.75 million private renters don’t believe that they will ever be able to buy a house. Since 2010, the number of renters who have this mindset has increased by 50%. Despite various policies that have been implemented by the current government to help more fist time buyers onto the property ladder, significant pessimism remains.

More Pessimistic Renters

According to figures published by the official English Housing Survey issued by Labour, 1.75 million private renters in 2016-2017 stated that they wouldn’t be able to own their own home. In 2009-2010, 1.16 million renters held this viewpoint, thus demonstrating a clear influence.

During 2003, the proportion of people owning a home peaked when it reached 71%. Rates have since been in decline, following a population growth, increasing property prices and lack of new housing. Furthermore, social housing sold under the right-to-buy scheme has not been replaced, further adding to the issue.

Labour Wants to Help

Overall, home ownership is at a 30-year low. There are around a million fewer under-45s with their own home now when compared to eight years ago. In response, Labour has set out plans to help first-time buyers. The aim is to provide local people with first refusal on new homes and bringing a new generation of discounted FirstBuy homes that are linked to local wages.

the Young Generation are Greatly Affected

The dramatic increase in house prices has greatly hindered new potential homeowners. The chances of a young adult on a middle income owning a home in the UK have more than halved in the past two decades. Essentially, young people are losing the ability to own a home.

The abolishment of stamp duty was originally aimed to help first-time buyers. However, it has since received significant criticism, after the independent Office for Budget Responsibility said that this would cause a rise in house prices and only benefit those who already owned homes.

Some Hope for Renters

Despite the bleak outlook for young people and renters, there are some positive signals. Official figures indicate that the number of first-time buyers increased to the highest levels since 2006. This was aided by the slowing house-price growth since the EU referendum.