Thursday, 23 July 2015

Generation Rent: The Housing Ladder Starts To Collapse For the Under-40s

House price rises of 5% a year and a shortage of affordable homes are set to swell the ranks of “generation rent” over the next decade, so that by 2025 more than half of those under 40 will be living in properties owned by private landlords. A report from accountancy firm PwC suggests the number of new homebuyers is set to fall over the next 10 years, as the high cost of raising a deposit locks large segments of society out of the housing market. Levels of homeownership have gone into reverse after years of increases that were stoked by the right-to-buy and the deregulation of the mortgage-lending business. The report suggests this trend will continue. By 2025, a quarter of all households will privately rent, with the biggest increase among those aged between 20 and 39, where “ a clear majority” will be private tenants within 10 years. Read more on the Guardian website.

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