The degree to which young Colchester people are locked out of the Colchester housing market has been revealed in new statistics.
A Colchester landlord asked me recently to what effect homeownership rates in Colchester in the early to middle-aged adult age range had affected the demand for rental property since the Millennium. I knew anecdotally that it had affected the local rental market, but I wanted to check the facts.
In the year 2000, 46% of Colchester 28-year olds owned their own home. Whilst a 28-year-old today, (born in 1990), would have only a 25% chance of owning their own home.
If we then go back to the year 2000, a 38 year Colchester person, (born in 1962). would have a 69% chance of owning his or her own home and a 38 year today in Colchester (born in 1980) would only have a 53% chance of owning their own home.
Look next at someone born ten years before that, a 38 year Colchester person (therefore born in 1962) would have a 69.1% chance of owning his or her own home and a 38 year today in Colchester (born in 1980) would only have a 53.9% chance of owning their own home.
Since the Millennium, overall general homeownership in the 25 to 44-year-old age range in Colchester has reduced from 63.96% to 46.25%
If you look at the graph below, split into the four age ranges of 25-year-olds (yo) to 29yo, 30yo to 34yo, 35yo to 39yo and finally 40yo to 44 yo, you will quite clearly see the changes since the Millennium in Colchester. The fact is the figures in Colchester show the homeownership rate has proportionally fallen the most for the youngest (25yo to 29yo) age range compared to the other age ranges.
The landlord suggested this deterioration in homeownership in Colchester across the age groups could be down to the fact that more of those born in the 80’s and 90’s are going to University and hence entering the job market at an older age.
So, what does this mean for the rental market in Colchester?
Only one thing: whilst local authorities are not building Council houses, and housing associations remain strapped for cash to build new properties, there is only one way that youngsters can achieve a home of their own which is through the private landlord sector.
If you ever want to pick my brains on the future direction of the Colchester rental market, just drop me line or pop in next time you are passing my office.