According to research published today by the Resolution Foundation, a generation of young people face the prospect of never owning their own home.
Four in ten 30-year olds now rent privately, double the rate for generation X and four times that for baby boomers at the same age. This major shift reflects the fact that, compared to their predecessors, millennials’ access to social housing has fallen as fast as their home ownership rates.
As more millennials reach their child-rearing years, the Foundation notes that policy has failed to catch up with the fact that bringing up children in the private-rented sector has now become mainstream. In 2003, the number of children in owner-occupied housing outnumbered those in the PRS by eight to one. That ratio has now fallen to two to one as a record 1.8 million families with children rent privately, up from just 600,000 15 years ago.
The Foundation argues that the sector will continue to be a major feature of housing in Britain for many years to come. Even if home ownership accelerates rapidly, millennials will never experience levels the baby boomers have seen.
More pessimistically, if home ownership growth follows the weak pattern of the 2000s, up to half of millennials could be renting (either privately or in the social rented sector) in their 40s, and a third could still be renting by the time they claim their pensions.
This rising share of retiree renters, coupled with an ageing population, could more than double the housing benefit bill for pensioners from £6.3bn today to £16bn by 2060 – highlighting how everyone ultimately pays for failing to tackle Britain’s housing crisis.
For many renters, the challenge is how to save for a deposit when they are paying a record share of income on housing. Help to Buy, available on all of our new homes under £600,000, enables buyers to purchase an apartment with a deposit of just 5%, topped up by a Government Equity Loan of 40% of the property’s value inside London and 20% outside of the capital. With our apartments in Greater London starting from £300,000, that’s just £15,000.
We also have apartments in Luton and Witham coming soon. Prices start at £170,000 but we won’t be able to offer Help to Buy until the end of the year.
Call the sales team on 020 8688 6552 to enquire.