Grim outlook for “Generation Rent”
The outlook for “Generation Rent” is not getting any better, infact according to PriceWaterhouseCoopers (PWC) it is worsening, with only one in four to be homeowners by 2025.
The analysis by (PWC) has been extended to look at tenure trends across different age groups in more detail. Key findings are:
By 2025, 59% of 20-39 year olds will be renting privately, up from 45% in 2013.
Only 26% of those in generation rent will own their own home by 2025, down from 38% in 2013.
Older generations, who have benefited from huge increases in the value of the homes they own, will largely be insulated from these trends. Three quarters of over 55s own the home they live in now and this will still be the case in 2025.
Richard Snook, senior economist at PwC, reportedly said: “Our updated research sets out the scale of the challenge faced by those in generation rent who are trying to get on the housing ladder. The continual advance of house prices, which have far outstripped growth in earnings, is fundamentally changing the way people live.
“With the majority of 20-39 year olds living in the private rented sector by 2025, policy will need to adapt. This could include encouraging a better quality of private rented accommodation including longer tenure periods, and more rental properties designed for families.
“Demand for housing in the UK has outstripped supply for more than two decades. Changing the outlook for generation rent will require us to build more houses than needed just to match population growth in order to make up the past shortfall between housing supply and growth in demand.”