Under 35s are increasingly generation rent
A housing analysis by think-tank The Resolution Foundation, Living Standards 2016, has found that under-35s face a future as private renters rather than buyers or tenants in social housing.
- Nationally, home ownership has been falling slowly since 2000, following a steady increase from the 1950s, and is around 63 per cent;
- Those aged 65+ now account for 32 per cent of all homeowners (cf. 23 per cent in 1998);
- Those aged 16-34 account for just 10 per cent of homeowners (cf. 19 per cent in 1998);
- For those under-35 in modest income working households (working-age households in the bottom half of the income distribution who are primarily in work) levels of private renting have more than doubled, from 22 per cent to 53 per cent.
Chief economist Matt Whittaker said: “If we want to see an increase in working families being able to afford to buy, it is essential that the housing shortage is tackled by the Government. Schemes such as Help to Buy can only ever help a minority… It is hard to imagine any way out of the home ownership crisis facing those on low to middle incomes that doesn’t involve significantly boosting house building.”
The Resolution Foundation is a non-partisan think-tank that works to improve the living standards of those in Britain on low to middle incomes. The foundation conducts analytical research on living standards in the UK and aims to produce policy solutions that shape the debate on economic and social policy.
The Guardian published a report about the Resolution Foundation analysis on February 13th 2016. This post is based on the foundation’s press release.