Homeownership rates have massively declined in the last 15 years, with almost two million young buyers priced out of homeownership, according to a new study by Property Partner.
The study revealed that if homeownership rates among 25-34 year olds in 2016 were the same as in 2001, an additional 1.8 million young people in this age bracket would be homeowners in England.
Increasing house prices, stricter lending criteria and the difficulty in saving for a deposit in a low-interest environment are the primary causes for this lack in home ownership in the younger demographics.
The lack of housing supply is also having a damaging effect on the market, with the report claiming that the UK with encounter a shortfall of almost 1.3 million homes by 2026, based on the supply and demand imbalance.
This think tank report has also revealed that property crowdfunding could form part of the solution.
Property crowdfunding provides would-be investors with the opportunity to invest in a share of a property through online platforms.
Although in its early stages in the UK, real estate crowdfunding in the USA has hit the $1billion mark.
By crowdfunding, investors can earn better returns than if they would have invested in an instant access savings account, whilst also boosting the supply of new homes by providing equity funding to small and medium-sized housebuilders.
Founder and CEO of Property Partner, Daniel Gandesha, commented: “The solution to the UK’s housing crisis must be innovation. There’s no time to waste. Young people need affordable access to the market. Housebuilding needs to double to meet demand. It’s time to put options like property crowdfunding on the table as part of the answer.”