Milton Keynes Chamber of Commerce : Buoyant housing market continues to put pressure on Generation Rent says PwC

Commenting on the ONS house price figures out today, Richard Snook, senior economist, PwC, said:

'Strong momentum in the UK property market means prices continue to outstrip growth in average earnings. That makes home ownership more difficult for Generation Rent, the 20-39 age group that our research shows is increasingly struggling to get on the housing ladder.

'ONS data show the average price of a UK home rose to £288,000 in November from £287,000 in October - an annual growth rate of 7.7%, and around three times the pace of earnings growth.

'Our research suggests that the share of 20-39 year olds in the private rental sector could rise from 45% in 2013 to 59% in 2025. Today's data illustrate the key driver of this shift - lack of affordability for first time buyers.

'The recent changes to stamp duty, whereby supplementary rates will be charged on purchases of second homes, may also provide a small boost to the market, as people rush to complete transactions before the changes come into force in April this year.'

Posted by: PwC LLP

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