Locked out of the housing market? We can help
The dream of homeownership is a distant prospect for many young people today. According to a new, independent report, almost two million more young people have been locked out of the housing market since 2001. The study, by the Social Market Foundation, an independent cross-party think-tank, argues that platforms like Property Partner offer a way to help more people onto the housing ladder, while also providing much needed investment in housebuilding.
The report, Locked Out: How property crowdfunding could help the next generation of homeowners, finds that if homeownership rates among 25 to 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. These young people have been locked out of the housing market by high house prices, stricter lending criteria and the difficulty of saving for a deposit in a low-interest environment.
The report points to insufficient housing supply as the key underlying factor, showing that the UK will face a shortfall of almost 1.3 million homes by 2026. It warns that current unmet demand and inadequate supply growth will further drive up property prices for first-time buyers.
Crucially, the report has found that we can help the affordability crisis. Property Partner, and companies like us, are well placed to address the source of these problems.
According to the report, here’s how we can help:
● Making it far easier for aspiring homeowners to save for a deposit. In an environment where house prices continue to increase, those saving for a deposit with Property Partner have a way to earn returns that keep up with house price growth. For instance, £100 invested in property at the start of 1996 would by the start of 2015 be worth over £600, while the same initial sum in cash would have grown to only £226 in an instant access savings account.
● Helping more people gain access to the property market. We’re widening participation in property ownership by lowering the barriers to entry, allowing people to invest smaller amounts across multiple properties in a diversified manner.
● Boosting the supply of new homes – by providing equity funding to small and medium-sized housebuilders. Read more about how we’re helping smaller developers.
Responding to the report, Property Partner’s Founder and CEO Daniel Gandesha, said: “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.”
Whether you’re saving up a deposit for your first home, or you’re already a seasoned property lover – you can build a portfolio to track the property market. Take a look at the opportunities available on our marketplace, now.