Only three out of ten of today’s ten year olds will be able to afford to buy their own homes unless house building increases, according to figures released by the Office of the Deputy Prime Minister.

By 2026 the proportion of 30+ couples who’ll be able to afford to buy a home of their own is predicted to fall dramatically. Today, approximately one half of couples today are able to buy; this is expected to fall to approximately a third if the country carries on constructing homes at current low building rates.

Housing and Planning Minister Yvette Cooper pointed out that unless more new homes are built, tomorrow’s thirty year olds (today’s ten year olds) will be denied the opportunities their parents and grandparents had to own a home of their own. Currently 71% of households are homeowners, but 90% say they would like to own their own home at some point.

These projections are based on the government’s response to the Barker Review of housing, which shows that building more homes reduces pressure on house prices and helps more families afford homes.

The review shows that Britain has not built enough homes to meet demand for years – over the last three decades the number of households has increased by more than 30%, but new home starts have fallen by over 50%. In the South and East, for every seven new households formed, only four new homes are being built.

Commenting, Yvette Cooper said: “For the sake of today’s ten year olds we need to start planning new homes for the future right now.” Over the next ten years the government has made proposals for 200,000 more homes than previously envisaged, as part of its Sustainable Communities Plan.

Speaking to the Local Government Association, Cooper said: “A lot of myths and misinformation about house building have been promoted by people who want to block new homes. The fact is we can build more new homes and safeguard the environment at the same time. People need to recognise it is unsustainable to carry on as we are. We need to protect the environment for the next generation. We also need to make
sure they have homes to live in.”