Sharp decline in under-40s who can afford their own home could damage London's economy

Londoners homeowners under 40 are set to decline by more than 10 per cent in the next 15 years due to changing lifestyle trends
Reuters

The number of Londoners under 40 who manage to set up their own home will plunge by more than 10 per cent in the next 15 years, official analysis reveals today.

The sharp decline is disclosed in figures from the Office for National Statistics which show there are currently just over one million households in the capital headed by someone aged between 25 and 39.

But despite an expected large increase in London’s population over the coming decades, the number of householders in this age group is projected to decline for each of the next 15 years.

The finding will heighten concerns about the difficulty faced by young people wanting to live in their own homes, and the potentially damaging impact on London’s economy.

The analysis covers only those Londoners who stay in the capital and does not take into account any who move out because of high property prices or other factors.

Instead, the decline appears to be driven by the continuing trend for more young adults to remain at home with their parents or to live in properties they share with friends, siblings or others.

It means that by 2033 there are expected to be 120,000 fewer households in London headed by someone in their late twenties or thirties. That represents a fall of 11.5 per cent over the period.

The number of people in the 25-39 age group heading homes they have either bought or are renting is then projected to grow again up to 2041.

But the statistics still show that by that date the number of Londoners in this age range living in their own household will be about 7 per cent lower than the total recorded in 2016.

A handful of boroughs, including Barking, Bexley and Havering, will buck the trend by showing projected increases. But most areas of London show a decline, with some due to experience a dramatic slump in households headed by those in the age group.

They include Hounslow, where the total is projected to fall from 28,200 to 22,900; Harrow, from 19,700 to 15,900; and Lambeth, which by 2041 is projected to have 2,700 fewer households headed by a 25- to 39-year-old than its current 54,700.

Camden, where households headed by a person aged 25 to 39 are expected to fall from 34,900 to 33,100, and Haringey, down from 34,100 to 30,200, are among other boroughs where young Londoners will find it harder to set up their own home.

Joanna Harkrader of the ONS said changes in “living arrangements” meant the number of younger households would fall by seven per cent, from 1,051,800 in 2016 to 974,100 in 2041.

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