Next generation less likely to buy their own homes

In 20 years time children will be ten times less likely to buy their own homes according to research conducted by Britspace, one of the UK's leading providers of steel-framed modular buildings.

The research is based on current trends in house prices which show today's GBP130K traditional-build starter property will be rising by 5% each year.

If this pattern continues, by 2026 buying a starter home will cost a staggering GBP344,000.

With student debt on the rise and graduate earnings starting at as little as GBP21k per year (as a nationwide average) the worrying gap between annual income and house prices is set to get even wider.

By 2026 the average graduate salary is predicted to rise by 42% to 29K per year.

According to Britspace, despite this increase of income only 25% of first time buyers will be able to afford a property.

The government has proposed a target of building three million starter homes by the year 2020 but they are likely to sit dormant as youngsters are forced to stay at home with their parents.

However, there is some hope.

Modern methods of construction are offering a drastic reduction in construction time and building costs and this saving can be passed on to the buyer.

A modular build i.e one that is built offsite, could be up to GBP90,000 cheaper to buy in 2026 than a traditional build according to current trends in modular property sales.

David Jupp Director of Sales and Marketing at Britspace commented: "Affordability in housing is a growing problem and one that is not set to ease".

"Developments in the modular construction industry have meant developers are now embracing new building techniques in line with the current marketplace".

Britspace also provides solutions for education, residential, military, custodial, healthcare and commercial sectors.

Back to top