Generation Locked Out of Home Ownership as Housing Affordability Hits Crisis Point in the UK

A “crisis of opportunity” is gripping the younger generation, as fresh research underscores the stark reality that almost none of the UK’s adults living with their parents can afford to purchase their own home. Official figures now show that 4.9 million adults remain in the family home, and the situation is especially dire in the south of England, where fewer than 1.5 per cent could ever hope to buy based on their own income.

A new affordability index from Skipton Group, developed in conjunction with Oxford Economics, reveals that 98 per cent of these adults cannot afford an average first-time buyer property in their local area. It is not simply a matter of saving for a deposit: removing this requirement from the calculation still leaves 97 per cent unable to buy, as monthly housing costs such as mortgages, utilities, and council tax vastly exceed sustainable thresholds at more than 45 per cent of income for the majority.

Stuart Haire, chief executive of Skipton Group, highlights this as a “systemic failure of our housing ecosystem.” Homeowners with adult children still living at home are affected too. If able to downsize to a property with one fewer bedroom, the average sum unlocked could be £72,400, helping to free up capital and property, but this remains out of reach for most families.

This is a nationwide concern. In no region can as many as 10 per cent of adults living at home secure a typical first home on their salary. London and southern England are particularly unaffordable, while even high earners face barriers; nearly 87 per cent of those earning £40,000 or above are unable to buy on their own, fuelling the so-called “singles tax” on solo buyers.

Skipton’s research finds that most who live at home into their thirties gradually manage to move out, but for those who remain into their forties, the likelihood of achieving home ownership by their own means sharply declines. This generational impasse threatens long-term financial stability and independence for millions, with significant knock-on effects for parents and wider society.

The report urges comprehensive action from government, lenders, and local authorities. Key reforms, especially to property taxes such as stamp duty, are seen as vital steps. Without significant intervention, millions remain locked out of the property ladder, with the dream of home ownership receding ever further into the distance.