Generation Rent 'has no stake in community' because housing market means they are being frozen outNew report shows younger people are failing to get a foot on the housing ladderInstitute for Public Policy Research says they are also putting career ambitions and family plans on hold
23:04 GMT, 10 December 2012
A generation of young people is being frozen out of the housing market and failing to put down roots, a report has found.
It said soaring numbers of young workers are being forced to rent, giving them little stake in their neighbourhood and a reduced sense of community spirit.
Their inability to get a foot on the housing ladder also means putting their career ambitions and family plans on hold.
No stake: Generation of young people is being 'frozen out of the housing market'
The analysis by the Institute for Public Policy Research found that 51 per cent of 18- to 30-year-olds believe they will not be able to buy a property for at least a decade.
It also suggested that a renter needed to live in an area for 14 years to achieve the sense of belonging immediately conferred by owning a property.
Dalia Ben-Galim of the IPPR said: ‘Insecure renting stops them from putting down roots, but it is also bad for society too.
‘Our analysis finds that home ownership has a big effect on people’s sense of belonging to their neighbourhood.’
The report recommends freeing more land for development, more home building and protecting tenants from rogue landlords.
House prices are now 11 times the average salary compared with seven times in 2001.
Figures from the housing charity Shelter show that three million young people aged 25 to 34 live with their parents – half a million more than in 1997. ‘Generation Rent’ is predicted to have grown by another half a million by 2020.
Miss Ben-Galim added: ‘Our analysis shows that the lack of houses is dragging young people down.
We found it is stopping many of them from building their careers and starting a family.
‘A huge majority of today’s younger generation want to own their home, just as most of their parents have done. But the prospect is slipping ever further over the horizon.’
A report has found soaring numbers of young workers are being forced to rent, giving them little stake in their neighbourhood
Around 100,000 young people are thought to be locked out of the property market every year, due to a lack of affordable housing, calls for large deposits and job insecurity.
Rising house prices and the economic slump have changed the landscape for first-time buyers.
In 1997, fewer than 10 per cent of first-time buyers under the age of 30 had help from family and friends, but by 2005 it was 45 per cent.
The report acknowledges this was partially to do with ‘unsustainable’ mortgage lending.
The IPPR report says: ‘It is not the case that the young people we spoke to want everything, with no sacrifice immediately.
‘They just want a chance to grow up, develop their lives, build careers and form relationships – and they need decent quality, affordable homes in which to do so.’