The English Housing Survey has revealed that a rising proportion of young people have been squeezed out of the housing market in England and are renting privately instead.The proportion o...
The English Housing Survey has revealed that a rising proportion of young people have been squeezed out of the housing market in England and are renting privately instead.
The proportion of adults aged 25 – 34 years old renting privately has risen from 31% to 45% in four years, according to the report.
21% of people in this age bracket were mortgage holders in 2008-09 however, this fell to 18% in 2012-13, with more renting privately, and so paying more of their income on housing.
The annual report into the state of the nation's housing market is produced by the Department of Communities and Local Government (DCLG).
It found that on average, owner occupiers buying with a home loan spent 20 per cent of their income on their mortgage in 2012-13. Meanwhile, private tenants spent 40 per cent of their income on their rent.
The statistics offer evidence that, especially during the financial crisis, young people found it difficult to get on the housing ladder, owing to stricter lending criteria from banks and a requirement to save for a large deposit.
The survey also revealed that 61 per cent of private renters anticipated owning their own home eventually.
David Orr, chief executive of the National Housing Federation, said: “It used to be the norm for people in their early thirties to set up a home of their own, but sadly being ‘priced out' is rapidly becoming the new the norm.
With more young people stuck renting privately, they find themselves having to pay rising rents for short-term lets, that offer them no stability or the chance to put down roots for their future.
The Government must build more of the right homes at the right prices in the right areas, so that we can end this housing crisis in a generation.”
Campbell Robb, chief executive of housing charity Shelter, said that young people were stuck in an expensive rent trap, unable to save up a deposit for a home.
The government needs to give 'generation rent' the chance of a stable home by building the affordable homes we desperately need,"
Overall in England, 14.3 million homes or 65% were owner occupied in 2012-13, the survey showed. Another four million (18%) were privately rented and 3.7 million (17%) were rented from local authorities and housing associations at a reduced rate, known as social housing.
Just over a fifth of social tenants said they had been homeless prior to being housed. Two-thirds of all social renters had waited less than a year before being housed, and 8 per cent had waited longer than five years.
The size of the private rental sector overtook the social rental sector for the first time in 2012-13, having been growing for many years.
Clearly, private tenants are more mobile than owners with a third moving in the previous 12 months compared with 4 per cent of owner occupiers. The majority (81%) of private tenants who moved out in the previous three years did so because they wanted to move. Some 7 per cent did so because they were asked to leave by their landlord or letting agent.