The house price problem is made all the more insurmountable by rising rates of short-term and long-term unemployment. The percentage of young adults living with their parents who are unemployed is almost twice the unemployment levels found amongst those in the same group who don’t live with their parents.
Average earnings of adults rise steadily through their twenties and don’t begin to level off until they are in their mid thirties, giving them additional means to leave the parental home. Also as age increases, so too does the likelihood young adults will be living with a partner – just 8% of people in the UK do at the age of 20, but by the time they’re 31 years old, that rises to 70% of Britons.
The house price paid by first time buyers is now higher compared to their incomes. In 1996, the ratio of first home price to income was 2.7 to 1 – by 2013 it had risen to 4.4.
If you want to know how you can still get onto the housing ladder and leave the nest, get in touch.