Interest rates and house prices mean many will never buy their own home

According to recent predictions made by industry professionals and analysts the rising interest rates and soaring property prices in the UK mean that millions of people over the age of thirty in the UK will never be able to afford their own home.

According to experts the cost of purchasing a property and repaying a mortgage has left millions of people that may have once been pretty certain that they would one day own their own home with little option other than to rent for the rest of their lives.

The four Bank of England interest rate hikes over the past year have seen many younger people struggling to take on a first mortgage – particularly with the rising house prices and the cost of purchasing a property. And for those aged over thirty the prospect of being able to purchase and own their own home is looking more and more bleak, leaving millions of people in this age group to rely on rented property.

One industry expert stated: 'Home ownership is falling in the UK as more people choose, or are forced, to rent.  We estimate that around 3.1m of today's over-30s who had expected to retire in their own homes will actually live out their golden years in rented accommodation.'

Another added: 'Affordability constraints continue to be a barrier to home-ownership for many first-time buyers. Mortgage lenders are trying to help by offering innovative products where appropriate, but will want to ensure lending remains prudent.'

Tom Smith
07.06.07

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