It’s impossible to ignore the plight of generation rent. The issue has become so big, with so many affected, that it’s almost a daily occurrence to confront the latest grim facts and figures. Those in their 30s and younger have found the housing market riddled with pitfalls and dead ends, and no one really seems to know what to do about it.
With the prospect of home ownership a seemingly unattainable dream for many, let’s take a look at the latest information and see what the real story is.
The Figures
We all know that house prices have been spiralling upwards for a long time. Whilst this is great for anyone who has already secured their home, it is an obvious barrier to younger first-time buyers.
The Resolution Foundation – which collates and reports on living standards in the UK – recently released a report that outlines some of the biggest issues and challenges for generation rent.
If current trends persist, the report found that a third of generation rent will still be renting when they reach retirement age. And, by that point, it is same to assume the prospect of home ownership will be firmly off the cards. 40 percent of 30-year olds are currently renting privately, which is four times the rate for Generation X. At the same time, housing benefit covers only 55 percent of housing costs and 1.8 million families with children are living in private rented accommodation, up from 600,000 in the early 200’s.
All of this paints a very grey picture for the future housing prospects of generation rent.
The Causes
Unluckily for generation rent, several factors have come together to keep them from getting a foot on the property ladder.
In line with rising house prices, the amount of money required for a deposit has also risen. With wages only now beginning to rise slightly, this issue alone has left many younger people without an insurmountable obstacle to climb. At the same time, social housing has been sold off in vast swathes by cash-strapped councils looking to make ends meet. Gone are the days of cheaper, affordable social housing for many.
Whilst the government has attempted to remedy this via ‘Help to Buy’ schemes, this has only pushed demand and prices higher for first time buyers, whilst also creating more shortages. All in all, it’s a confluence of factors that is only making things worse for generation rent.