One third of millennials ‘will never own their own home’ – new research
One third of millennials will never be able to afford to buy their own home, according to new research.
A new report by the Resolution Foundation predicts that of Britain’s millennial generation – defined as people born between 1980 and 1996 – 40% will still be renting into their 40s, while a third could be doing so into retirement.
The research also warns that the Government’s housing benefit bill could soar as a result.
The report states: “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.”
Lindsay Judge, senior policy analyst at the Resolution Foundation, 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.
"While there have been some steps recently to support housebuilding and first-time buyers, up to a third of millennials still face the prospect of renting from cradle to grave.
"If we want to tackle Britain's housing crisis we have to improve conditions for the millions of families living in private rented accommodation.
“That means raising standards and reducing the risks associating with renting through tenancy reform."
The report recommends a three-year cap in rent increases, as well as changes to the tax system to discourage second home ownership.
Labour has long advocated tighter regulation of the private rented sector – proposing secure three-year tenancies and a licensing scheme for landlords.
A spokesman for Department of Housing, Communities and Local Government said: "Our Help to Buy scheme and the recent cut in stamp duty are helping more young first time buyers get on the property ladder.
“Figures show that we are seeing the highest number of first time buyers for more than a decade.
"But we're also ... giving councils stronger powers to crack down on bad landlords and consulting on stronger protections for tenants themselves."