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New analysis suggests ‘cradle to grave’ renting may become the new normal
Tuesday, April 17, 2018 – 12:22pm
One third of Brits born between 1981 and 2000 – the so-called millennial generation – are likely to continue renting into their retirement, according to a forecast from the Resolution Foundation think-tank.
The foundation’s Home Improvement report found that, if current trends continue, less than half of millennials will own their own homes by the age of 45.
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That rate will rise in the years after, as aging millennials inherit money or property from older generations, but around a third will remain without property when they reach retirement.
“Britain’s housing problems have developed into a full-blown crisis over recent decades,” said Lindsay Judge, senior policy analyst at the Resolution Foundation. A shortage of housing stock whas driven property prices beyond the reach of many, with young people “bearing the brunt”.
Home ownership – long a cornerstone of British self-image – has been in steady decline in recent years. The percentage of homes occupied by their owners rather than by tenants has dropped by around 10% over the past decade, hitting a record low of 63.4% in 2016.
“By contrast, the private rented sector has ballooned in size”, says The Guardian. As of 2017, more than 4.5m households in England are occupied by private tenants – almost double the 2.3m recorded in 2004.
Four in ten 30-year-olds now live in privately rented accomodation, “double the rate for generation X and four times that for baby boomers at the same age”, says City AM, “reflecting that millennials’ access to social housing has fallen as fast as their home ownership rates”.
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Source:: The Week – All news