Young Britons being squeezed out of the housing market by migration surge: Number of people renting in their thirties hits record high of 2.2million 

  • New figures show how difficult it has become those in twenties and thirties to get on property ladder
  • The show record 2.2 million people were still renting in their thirties in 2014
  • Soaring house prices, crackdown on risky mortgage lending have put the dream of home ownership beyond reach for many
  • Economists said the UK housing market had reached a 'tipping point'

The number of people still renting in their thirties has almost doubled to a record high since the financial crisis.

Figures from the Office for National Statistics published yesterday underline how difficult it has become for millions of people in their twenties and thirties to get on the property ladder.

They show that a record 2.2 million people were still renting in their thirties in 2014, compared to 1.24million in 2007 - the year that Northern Rock collapsed and the credit crunch began.

Soaring house prices, a crackdown on risky mortgage lending and years of meagre or non-existent pay rises have put the dream of home ownership beyond reach for many people.

And last night campaigners said the rise in population over the last decade due to the surge in migration over the last decade has been a major factor in creating a housing shortage, pushing up prices and squeezing young Britons out of the property market.

Figures from the Office for National Statistics published yesterday underline how difficult it has become for millions of people in their twenties and thirties to get on the property ladder

Figures from the Office for National Statistics published yesterday underline how difficult it has become for millions of people in their twenties and thirties to get on the property ladder

Alp Mehmet, Vice Chairman of Migration Watch UK, said: 'Rapid population growth from mass immigration has put huge pressure on the demand for housing. This has certainly contributed to the rise in house prices which is now affecting so many younger people who can no longer get on the housing ladder.'

According to the Office for National Statistics, the number of 30-somethings who have a mortgage has slumped to 3.93m in 2014, down 25 per cent from 5.24m in 2007..

The Office of National Statistics (ONS) said home ownership has also fallen across the UK, reversing a three decade long trend.

Economists said the UK housing market had reached a 'tipping point', where younger people are more likely to rent than own their own home. They face a less secure future as a result.

A record 1.2million people aged between 31 and 35 were renting in 2014, according to latest figures from the ONS.

This equates to 31.4 per cent of the age group. This compares to just 648,000 people in this bracket in 2007, or 17.3 per cent.

The number of 31 to 35-year-olds with mortgages fell from 2.5million to a record low of 2million over the same period.

The figures also showed that people aged 25-29 are now more likely to rent privately (43.3 per cent) than own a home with mortgage (39 per cent).

This marks a dramatic change from just 15 years ago, when people in their late 20s were more than twice as likely to own (56.5 per cent) rather than rent privately (21.4 per cent).

Laura Gardiner, senior policy analyst at think-tank the Resolution Foundation, said: 'We've reached a tipping point in the UK housing market where young people are now more likely to rent privately than own their home.

ONS figures showed a record 2.2 million people were still renting in their thirties in 2014, compared to 1.24million in 2007

ONS figures showed a record 2.2 million people were still renting in their thirties in 2014, compared to 1.24million in 2007

'This dramatic shift from owning to renting has major consequences for young people and future generations. For many people, it brings major insecurity in terms of their housing costs and being able to find a secure long-term home.

'Ultimately it also means the nation's wealth will become increasingly concentrated amongst a smaller pool of home-owners, with serious implications for social mobility.'

The Government is trying to help younger people get on the housing ladder, with initiatives such as the Help to Buy Scheme and the Help to Buy Isa.

It has also promised to build more affordable homes to address the housing shortage.

But a crackdown on risky home loans has made it harder for many with small deposits to get a mortgage.

And house prices have also soared faster than household incomes over the past decade as workers have endured years of pay freezes or meagre wage hikes.

The average UK house price has jumped 24 per cent from £214,000 in 2007 to £265,000 in 2014, according to the ONS.

During the same period households' disposable income after taxes has increased 20 per cent from £25,772 in 2007 to £30,895 in 2014. A

Bu the decline of home ownership and the increase in renting has been felt across the country, according to the ONS.

Its figures show that the proportion of households who own their own home increased from 56 per cent to 71 per cent between 1981 and 2008.

But it fell back to 67 per cent in 2014.

Dr Philip Wale, head of economic analysis at the ONS said; 'This fall in home ownership, and the marked increase in private renting, have reversed a three decade long trend towards increased home ownership, and partly reflects constrained mortgage lending and the relative performance of house prices and household incomes during the recovery.'

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