Number of under-30s on housing ladder plummets as wealth gulf widens

29 September 2023 , 05:00

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The number of under-30s on the housing ladder has plummeted, grim data published today reveals (file image) (Image: Shared Content Unit)

The number of people getting on the housing ladder by the time they turn 30 has plummeted as the gulf between the rich and poor widens.

More than six in 10 of those born in the 1950s and 1960s owned their own homes by age 30. But a study published today shows that for those born in the 1980s this has fallen to just 36%.

Since 2006 the wealth of the richest 10% grew 25 times faster than the poorest 30% - with huge differences according to where people live and their ethnicity. People in the richest areas of the UK - including southern and eastern England - are nearly three times as wealthier than those in the poorest on average.

Household median wealth in the South East is £503,400, compared with £168,000 in the North East. A white British household typically has wealth of £313,900, but it is just £85,900 for Black Caribbean households. Experts warn this must be tackled as priority.

The report, by UK 2040 Options and The Resolution Foundation, found the richest 1% earn 13% of the UK’s total income. It also concluded that the UK's wealth gap is the second widest in the 38-strong Organisation for Economic Co-operation and Development, only behind the USA.

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Mike Brewer, Chief Economist at the Resolution Foundation, said: “Unequal societies tend to be less healthy, less trusting, and have more crime and violence. A vibrant economy doesn’t have to mean high inequality… Taking steps to reduce the extent of income and wealth inequality, and to limit its damaging impacts, will be an essential challenge of the next two decades.”

Experts said that changes to tax laws - including refroming capital gains tax and looking at unearned wealth - would be obvious steps toward reducing the gap.

Alex Burns, Director of UK 2040 Options said: “Inequality is holding Britain back but this report shows that governments have options. We know that income and wealth inequality affects people’s ability to save, own a home, access basic goods, and pass on opportunities to their children.

"All parties have a strong focus on growth and of course that’s essential. But who gains from that growth is just as important to consider - to make sure that a rising tide can lift all boats.”

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Dave Burke