A perfect storm of rising interest rates, house price inflation, and mediocre annual wage increases will combine to make it impossible for under-40s to break out and own property in the future, according to a recent report published by PricewaterhouseCoopers. The prediction states that within a decade, the embattled age group will struggle to become anything more than just tenants looking in the distance at ever owning a property of their own.

House price growth is expected to continue at an estimated 5% rate each year, outpacing wage increases, which are expected to continue at 3 to 4%. Mortgage rates are expected to stay on a successful upwards track, making it more difficult to own property. The 20 to 39 age group will be hit especially hard, as they are striving to make it on the property ladder, and trying to get a financial start to life any way they can. The first step on the ladder could easily be one which is only grasped at and missed for possibly years.

PwC chief economist Richard Snook commented on the conundrum faced by millions of pre-40 year olds, saying: "Driven by a decade of soaring house prices pre-crisis and lower loan-to-value ratios post-crisis, the deposits needed by first-time buyers have risen significantly.”

Snook continued: "As a result, a generation of private renters has emerged and this will increasingly be the norm for the 20-39 age group."

Another issue remains hidden under the surface as well. That issue is under supply and over demand which continues to put upward pressure on housing prices, which could only get worse with time. Although, unaffordable housing could slow down the effect and help bring balance between supply and demand. Currently it is unlikely, although possible.

Current owners on the property ladder could benefit from the issues which will likely plague under-40 year olds. The result could be a higher percentage of overall home owners, which will only see remortgaging with the best lender as the one challenge on the horizon.