Homeownership has become an increasingly elusive goal for young people in Lancaster. Rising living costs, stagnant wages, and stricter mortgage requirements are making it harder for under-34s to get on the property ladder. But how bleak is the situation, and is there hope for those struggling to find a home of their own?
Lancaster’s Housing Challenge for the Under-34s
Lancaster has approximately 59,980 households, with only 4.3% led by individuals aged 16 to 24, and 12.0% by those aged 25 to 34. Being a university city, the younger population is considerably higher than other parts of the UK, where the national averages, sit at 2.6% and 13.5%, respectively.
Looking deeper into Lancaster’s younger households, the breakdown is striking. Among 16 to 24-year-olds, 71.9% are renting privately, with just 10.2% owning a home with a mortgage. This contrasts with national figures, where more young people are in social housing and fewer rely on private rentals. For the 25 to 34-year-olds, homeownership with a mortgage rises to 39.8%, but the remaining 45.1% are still in the rental market.
Why Homeownership is Elusive
The challenges young people face in Lancaster aren’t just due to high property prices. Wages in the area haven’t kept up with inflation, making it harder to save for a deposit. Mortgage lenders are also becoming more conservative, which means the absolute amount needed for a down payment has grown, even if the percentage required hasn’t changed.
Add in the burden of student debt and the rising cost of rent, and saving for a deposit can seem almost impossible. But this isn’t a new problem. While older generations often bought homes in their 20s, today’s economic conditions make this far less common.
The Shifting Nature of Homeownership
While fewer young people are buying homes today, this doesn’t mean homeownership is out of reach—it just takes longer. In fact, in countries like Germany, many people don’t buy homes until their 30s or 40s. This trend is starting to appear in the UK as well, including in Lancaster.
Waiting to buy a home can actually offer some benefits. By the time they purchase, people often have higher incomes, more savings, and greater financial stability, which can reduce the burden of debt in the long run.
Generational Wealth and the Future
One crucial factor to consider is the wealth tied up in homes owned by Lancaster’s older residents. Many bought their properties decades ago when prices were lower, and now hold substantial equity. As these homeowners downsize or pass on their assets, younger generations may find themselves with financial help that could make homeownership more achievable.
Looking Ahead
Although the path to homeownership is difficult for young people in Lancaster, it’s far from impossible. Programs like Help to Buy, along with the eventual transfer of wealth from older generations, could make it easier for today’s renters to become tomorrow’s homeowners. The key is patience, planning, and taking advantage of opportunities when they arise.
While young people may buy homes later in life, they’re not being locked out of the market entirely. The future of Lancaster’s property market holds promise for those willing to navigate its challenges and wait for the right moment.
Are you looking to buy your first home? At JDG we are here to help. If you need any advice, please get in touch. You can call us on 01524 843322 or email the team at sales@jdg.co.uk
Thanks for reading
Michelle
