Will millennials ever own their own homes?

“It’s been a remarkable year in Residential Property, but there is still more to be done.” This was the resounding message at this year’s EG UK Residential Summit in Birmingham, as the panel tackled some of the pertinent issues set to obstruct the forecasted delivery of new build homes into 2018 and beyond.

Only a fifth of the forecasted new homes in 2017 have been delivered

The panels’ vibrant discussions uncovered a sobering fact that only a fifth of the forecasted new homes in 2017 have been delivered – and called for the government to act to release more land, remove cumbersome planning restrictions, support good finance deals for SME builders and fund more social housing projects. 

There is undoubtedly a need to address other incumbent issues too, such as Stamp Duty Land Tax (SDLT) and the impact of “Help to Buy” schemes, which some panellists expressed had over inflated house prices – adding to the problem, not relieving it.

As 2018 takes shape, it will be interesting to see how The Budget announcements will increase activity within the housing market – and how soon the funds will be pushed through to the Local Authorities for building social housing.

Owning your own home may become less of a priority for millennials 

As the disparity between earnings and house prices becomes increasingly greater, I also asked myself “why are we so obsessed with owning our own homes?” The thought-provoking panel traded ideas on changing this landscape and how we could live in the future (when I retire). For example, making way for Build to Rent (BTR) and Modular Living. We do seem to be on the cusp of a significant sea change for our millennials. Possibly, as this will be the only option available to them. 

However, experts said this demographic are not as obsessive about owning their own homes. So, does the future look set for co-living? State of the art buildings with on-site concierge services, cinema rooms, spas and gymnasiums all in one building?

Owning your own home may be less of a priority for millennials and long-term renting doesn’t seem such a bad trade-off… when you have all those luxuries on your doorstep.

All in all, this year’s EG UK Residential Summit in Birmingham has encouraged conveyancers to look to the future of the residential property market with open minds. 

As an industry, I anticipate that we will be striding forwards in solving the key issues in the market and be well on our way to greater house building numbers in 2018, whether that be through Build to Rent (BTR), social housing or private homes.

With thanks to Nicola Wilson-Sanders, Key Account Manager at tmgroup