Home ownership is falling starkly in the UK, according to new research by high-end property firm Savills.
The third issue of the Residential Property Focus 2015 shows the rate at which home ownership has dropped since 1960 and the rate at which it is predicted to keep dropping for those born in the 1980s and 1990s.
While 53% of those born in 1960 could look forward to being home owners by the age of 30, just 35% of those born in 1980 have achieved that same dream. It's also projected that only 26% of those born in 1990 will own their own home by the time they reach 30.
By the age of 40, the majority of people born in 1990 are expected to be in rented accommodation, with only 47% set to own their home.
A fall in home ownership levels, though, is a further boost for the already burgeoning buy-to-let sector, a sector that is growing in popularity year by year.
“Quite simply, falling rates of home ownership mean rising rates of renters, so the growing situation in the UK creates a substantial opportunity for those looking to make their money work for them by investing in residential real estate,” said Jonathan Stevens, Managing Director of Surrenden Invest, a London-based property consultancy specialising in the buy-to-let market.
“Of course, alongside this it is important to remember that the area in which you invest is important too – a few miles difference, particularly in major cities like London, Manchester and Liverpool, can have a big impact on yields.”
This is especially relevant to properties in the capital, where house prices are anticipated to rise by 21.5% in central London and by 18.2% in outer London over the next five years.
The arrival of Crossrail is also expected to increase the value of house prices in areas that have previously flown under the radar.
For example, property surrounding the new Custom House Crossrail station is set to grow in value by 40.5% over the next five years, while rental price growth in this area is projected to be above 28% by 2020.