UK Housing Crisis: Simon Squibb Highlights ‘Impossible’ Homeownership for Under-40s

In a recent LinkedIn post, Simon Squibb discusses the growing challenges faced by individuals under 40 in the UK when it comes to homeownership, arguing that the current system has normalized an unacceptable reality. Squibb contends that the dream of owning a home is becoming increasingly out of reach for younger generations, leading to significant personal and societal compromises.

The Normalization of Unattainable Homeownership

Squibb opens his post by challenging the common “rent or mortgage” debate, stating that a place to live should be considered a fundamental human right. He asserts that for those under 40 in the UK, owning a home is now “almost impossible.” This normalization of difficulty, he suggests, is a systemic issue rather than an individual failing.

People are spending £51,110 on rent before they even hit 30. Homes cost six times the average salary when it used to be three. And first-time buyers are being pushed into their mid-30s, the oldest EVER on record.

According to Squibb, the financial landscape has shifted dramatically. He points out that the ratio of home prices to average salaries has doubled, making it significantly harder for young people to save for a deposit. This has resulted in first-time buyers reaching their mid-30s, a historically late age, to achieve homeownership.

Analyzing the Barriers to Entry

Squibb breaks down the key factors contributing to this crisis, highlighting how buying a home has become an insurmountable hurdle. He details the escalating costs, particularly in London, where the average home price approaches £888,000. Even with a 10% deposit, Squibb argues, mortgage repayments can often be double the cost of rent, presenting a difficult financial equation for aspiring homeowners.

Furthermore, the entrepreneur emphasizes that wages have not kept pace with property inflation. He notes that the average buyer now dedicates a substantial portion of their income to mortgage payments:

An average buyer now gives up 34.3% of their take-home pay just to cover their mortgage. That’s before bills, childcare, travel, and food.

This statistic, Squibb suggests, illustrates the precarious financial position many face, where essential living costs are not even factored into the initial mortgage burden. He also points to a decline in first-time buyer mortgages, particularly in London, where there has been an 8% drop over the past decade. Nationally, the figures are stark:

Nationally, only 282,000 first-time buyer mortgages were issued last year, the lowest since 2013.

This data, as presented by Squibb, indicates a systemic freezing out of potential buyers from the market.

The Diminishing Returns of Property Investment

Adding another layer to his analysis, Squibb questions the traditional view of property as a guaranteed investment. He observes that recent property value growth has been minimal, especially when adjusted for inflation.

Asking prices grew 0.3% in the last 12 months. That’s basically nothing when you factor in inflation.

In Squibb’s view, this lack of significant return further disincentivizes purchasing, especially when contrasted with the high cost of entry. He concludes that the current system forces individuals to rent, often leading them to “give up on their dreams and delay families, just to get a job they hate so they can survive.” Squibb reiterates his core message: it is fundamentally wrong that it takes until one’s 40s to secure a place to call home.