This week has seen reports from Shelter and the Independent Resolution Foundation which claim that renting will be a way of life for young UK families. Rising prices for properties for sale in London will reportedly lead to 33% of families with children renting privately by 2025. At present, the figure stands at 25%.
Many are unable to afford London properties for sale and the trend towards renting privately will be most stark in the capital. Shelter’s report claimed: “The worse the economy, the more the likelihood of this group’s housing being in the private rented sector. In London, if current trends continue, tenants will soon outnumber owners, with important political, social and economic implications.”
It’s not just prices for properties for sale in London which are contributing towards renting fast becoming a way of life for increasing numbers of young families in areas across the rest of the UK. According to the new report commissioned by the Independent Resolution Foundation, the number of families with young children renting privately has soared by 86% over the past five years.
According to reports in the Telegraph, one million people under the age of 30 will be priced out of the property market by the end of the decade, with half a million living with parents. The figure comes courtesy of the Joseph Rowntree Foundation, which has called for urgent action to improve the state of the rental market. This includes more housing and the expansion of local letting agencies dedicated to work with vulnerable young people. The report also called for strong political leadership and a focus on working with landlords and tenants to make the rental market more affordable and stable. Solutions include lower-rent and longer-term tenancies and tax breaks for young families.
Sources: Telegraph online, Guardian online.