Is "Generation Rent" Permanent?

Millennials, those who were born between 1980 and 1996 are highly likely to be renting by the age they are 30 according to a report released by the Resolution Foundation.

40% of millennial will be renters, double the rate when compared with members of generation X, who were born between 1965 and 1980.

The government has said that they will respond in order to remedy this situation by implementing policies that will reduce the burden on young people.

However, the government's proposed fixes may not be enough according to The Foundation's Home Improvements report, which has called for more help for first-home buyers and renters.

The report shows that 1.8 million families rent rather than own their own home, a large increase on the figure of 600,000 recorded 15 years ago.

While millennial families do receive housing benefit, the relative value of this help has reduced when compared to that received by previous generations.

Lindsay Judge of the Resolution Foundation says that:

"Britain's housing problems have developed into a full-blown crisis and young people are bearing the brunt - paying a record share of their income on housing in return for living in smaller, rented accommodation."

"If we want to tackle Britain's housing crisis we have to improve conditions for the millions of families living in private rented accommodation. That means raising standards and reducing the risks associating with renting through tenancy reform."

One aspect of the current laws that should be changed according to the report is the prevalence of second home ownership. In addition, rent controls that restrict increases to inflation over a 3 year period should also be considered according to the report.

Figures released by accountancy firm PwC predict that due to increases in house prices, 7.2 million households will be renting by 2025, up from 5.4 million now and 2.3 million in 2001.

Political parties in opposition are tabling proposals for various changes to the system, however the government says that the Help to Buy scheme and stamp duty cuts for first time home buyers have resulted in the highest level of first home ownership in a decade.

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