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House prices in the U.K. are now so high that a third of British people believe they will never buy their own home. This is according to a new report published by the Halifax Bank. Home ownership was once an achievable goal for generations of Britons. However, rising prices now mean the prospects of getting on the property ladder are on the decline. The report says that one in five twentysomethings has no desire to own their own home. Craig McKinlay, mortgages director at Halifax, said: "We may be heading towards the point where the aspiration to own a nice home will be replaced by the aspiration to simply live in one." He added:"It seems that people are now beginning to accept a lifetime of renting."
Britain's Office for National Statistics earlier this week stated that house prices have risen by 10.5% inthe past year. It expressed concern at what it describes as "runaway train" house prices. The average U.K.house was valued at $425,000 in 2013. Things get bleaker for house hunters wishing to buy in London. Prices in the capital have risen by 18 per cent in a year to an average of $610,000. The Halifax report writes about possible long-term social problems arising from, "the division between homeowners and non-homeowners".The report warned that if there are fewer first-time buyers, "the market will come to a standstill". If this happens, prices will have to come down.
