By Kate Brown
A new report by the Resolution Foundation has revealed that up to a third of young people face living in private rented accommodation all their lives. Currently, around 40% of millennials privately rent at age 30.
The number of families with children now renting in the private sector has risen threefold in 15 years from 600,000 to 1.8 million.
Senior policy analyst at the Resolution Foundation, Lindsay Judge, said: “Britain’s housing problems have developed into a full-blown crisis and young people are bearing the brunt – paying a record share of their income on housing in return for living in smaller, rented accommodation”.
Senior research economist at the Institute for Fiscal Studies states: “house prices have risen around seven times faster in real terms than the income of young adults over the last decade” and this is why millennials struggle to get on the property ladder. A recent report from The National Housing Federation’s ‘Yorkshire and the Humber Home Truths 2017/2018’ concluded that the average full-time working in Sheffield needs an astonishing 62% pay rise in order to afford a mortgage on a typical home in the city. Others argue that high renting prices have left millennials unable to save for a house.
Related Articles:
Middle-income earners show decline in home ownership
UK households are more likely to borrow than save
UK mortgage approvals hit a near five-year low
