Generation Rent: London To Become A City Of Renters By 2025

London will become a city of renters, with just 40pc owning their own home in 2025, according to new research from PwC. This is a reversal of the situation in 2000, when 60pc of Londoners owned a house, either outright or with a mortgage. PwC's forecast of the continuation of 'generation rent' will come as bad news to many, including the government, which has been attempting to create a nation of homeowners by artificially boosting the market with schemes such as Help to Buy. George Osborne is also penalising landlords by raising stamp duty on buy-to-let properties from April. Locked out by high prices and unattainable deposits and mortgages, young people will be the hardest hit: just 26pc of those currently aged 20-39 will own their own home by 2025. This compares with 64pc of households born in 1960 and 1970 who owned a house by the time they were 35. Read more on the Daily Telegraph website.

Only 26% Of Young Adults Will Be On Housing Ladder By 2025

Almost 60% of 20- to 39-year-olds in England will rent their homes by 2025, while just 26% will have got on the housing ladder, research shows. “Generation rent” will find it increasingly difficult to buy and are likely to be older than previous generations before they can afford their own home, according to a report by PwC. High prices and deposits as well as rising interest rates will put young adults at risk of being locked out of property ownership. The biggest shift in tenures is expected to be among 25- to 34-year-olds, with two-thirds of households living in private rented accommodation by 2025, compared with 48% in 2013. A third of those aged between 35 and 44 will be renting in a decade’s time, compared with 24% in 2013, and among 45- to 54-year olds the figure will have risen from 15% to 21%. Read more on the PwC website.

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.

IDS Accused of Misleading MPs over Cost of IT Failures

Iain Duncan Smith has been accused of misleading parliament after it emerged that the DWP could write off up to £161m spent on an IT system for ambitious welfare changes – more than four times what the minister said would be wasted.  The welfare minister also faces further embarrassing disclosures from PwC accountants who found that the universal credit system, which will allow the government to roll six welfare payments into one, has had little ministerial oversight. In one instance, a civil servant's personal assistant was allowed to sign off contracts, they found. The disclosures emerged at a public accounts committee meeting when officials from the department were closely questioned by MPs. Norma Wood, the head of the Major Projects Authority, agreed that the system would have to write off at least £140m. Read more on the Guardian website.