Soaring house prices have led to a dramatic fall in the number of young people who can buy their own home, new research showed today. More than a third of 16-25 year olds were on the property ladder in 1991, but two decades later the figure had fallen to just one in 10. Since the early 1990s, only the over-65s have seen growing numbers of homeowners, as first-time buyers struggle even to get a loan. Only the over-65s have seen an increase in the level of home ownership since 1991, according to the Office for National Statistics . Deposits for first time buyers peaked during the economic downturn in 2009 at 28 per cent of the purchase price . The number of first-time buyers has not recovered since the financial crash in 2008 . The Office for National Statistics examined the state of the housing market over 30 years. It found there has been growing demand but low levels of new homes being built, pushing up asking prices. ‘House prices have been increasing, and first time buyers are finding it more difficult to get on the property ladder – while home ownership among younger age groups generally has declined,’ the ONS said in a new report. Number of mortgage loans for first time buyers, UK, 1980 to 20134 . Between 1980 and 2002, the number of mortgages agreed for first time buyers was averaging around 486,000 per year. As a result of rising prices and bigger deposits, the average age of first-time buyers is now 30, according to the Council for Mortgage Lenders . The ONS says a major cause of the problem is rising demand, but fewer homes being built over many years . But there was a 31 per cent decline in mortgages for first time buyers from between 2002 and 2003, and another 47 per cent drop in 2007 to 2008 in the wake of the financial crash. Even now the level of loans to first-time buyers remains below the average seen before to 2003. As a result, the chances of young people owning their home have slumped dramatically. In 1991, 67 per cent of the 25 to 34 age group were homeowners. By 2011-12, this had slumped to 43per cent. Among 16-25-year-olds the figure fell from 36 per cent to just 10 per cent over the same period. For the 35 to 44 age group it fell from 78 per cent to 64 per cent while home ownership has increased among older age groups. House prices have risen dramatically since the early 1980s, even allowing for the economic crisis the ONS said . The ONS said a key factor in the shift is likely to be the larger deposits people need to get on the property ladder. Between 1988 and 2013, the average deposit as a percentage of purchase price increased by almost 10 percentage points. Deposits for first time buyers peaked during the economic downturn in 2009 at 28 per cent of the purchase price. Since then they have begun to fall, but remain among the highest for the last 25 years.
Only  over-65s saw increase in the level of home ownership since 1991 .
Average age of first-time buyers is now 30 as prices continue to rise .
ONS blames growing demand but low levels of housebuilding for crisis .
Soaring house prices have led to a dramatic fall in the number of young people who can buy their own home, new research showed today. More than a third of 16-25 year olds were on the property ladder in 1991, but two decades later the figure had fallen to just one in 10. Since the early 1990s, only the over-65s have seen growing numbers of homeowners, as first-time buyers struggle even to get a loan. Only the over-65s have seen an increase in the level of home ownership since 1991, according to the Office for National Statistics . Deposits for first time buyers peaked during the economic downturn in 2009 at 28 per cent of the purchase price . The number of first-time buyers has not recovered since the financial crash in 2008 . The Office for National Statistics examined the state of the housing market over 30 years. It found there has been growing demand but low levels of new homes being built, pushing up asking prices. ‘House prices have been increasing, and first time buyers are finding it more difficult to get on the property ladder – while home ownership among younger age groups generally has declined,’ the ONS said in a new report. Number of mortgage loans for first time buyers, UK, 1980 to 20134 . Between 1980 and 2002, the number of mortgages agreed for first time buyers was averaging around 486,000 per year. As a result of rising prices and bigger deposits, the average age of first-time buyers is now 30, according to the Council for Mortgage Lenders . The ONS says a major cause of the problem is rising demand, but fewer homes being built over many years . But there was a 31 per cent decline in mortgages for first time buyers from between 2002 and 2003, and another 47 per cent drop in 2007 to 2008 in the wake of the financial crash. Even now the level of loans to first-time buyers remains below the average seen before to 2003. As a result, the chances of young people owning their home have slumped dramatically. In 1991, 67 per cent of the 25 to 34 age group were homeowners. By 2011-12, this had slumped to 43per cent. Among 16-25-year-olds the figure fell from 36 per cent to just 10 per cent over the same period. For the 35 to 44 age group it fell from 78 per cent to 64 per cent while home ownership has increased among older age groups. House prices have risen dramatically since the early 1980s, even allowing for the economic crisis the ONS said . The ONS said a key factor in the shift is likely to be the larger deposits people need to get on the property ladder. Between 1988 and 2013, the average deposit as a percentage of purchase price increased by almost 10 percentage points. Deposits for first time buyers peaked during the economic downturn in 2009 at 28 per cent of the purchase price. Since then they have begun to fall, but remain among the highest for the last 25 years.
have seen an increase in the level of home ownership since 1991, according to the Office for been growing demand but low levels of new homes first-time buyers is now 30, according to the