As house prices continue to soar, a new study has revealed that three-quarters of people in Britain fear it will be impossible for future generations to have a home of their own.
The Ipsos MORI survey, commissioned by Shelter and British Gas, found that 74% of people in Generations X and Y said it is harder for them to get a home to settle down in than it was for their parents’ generation.
This compares with only 44% of people born in the Baby Boomer or pre-war years. As a result of a lack of housing stock and strong demand, many are unable to get a foot on the property ladder and are left stuck in the rental sector.
The research revealed that millions 25-34 year olds in Britain who make up Generation Rent have moved more than twice as frequently per year of their lifetime as pensioners.
Home ownership has been falling slowly since the start of the century following a period of steady increase from the 1950s onwards and currently stands at around 63% today.
Campbell Robb, Shelter’s chief executive, said: “The fact that vast numbers of people fear their grandchildren will never have a home to put down roots in, highlights the sad truth that this country is once again at the mercy of a housing crisis.
“While we have made progress over the last 50 years, our current housing shortage means millions are facing a lifetime of instability and, understandably, people are giving up hope. But if our history tells us anything, it’s that together we can make things change.
“For the sake of future generations we cannot make this crisis someone else’s problem. We’re urging the nation to tell us what they really need from a home – so we can better help those who aren’t lucky enough to have one. At Shelter we won’t stop until we all have a place to call home.”
Low interest rates combined with the economic recovery have done little to reduce the need for rented housing, while house price inflation ahead of wage growth has pushed property prices out of reach for many.
Critics of the government’s recent policy announcements to dampen the buy-to-let sector have argued they could have a huge impact on the rental market. Industry experts have warned that the 3% stamp duty increase in April as well as the reduction in tax relief landlords can claim on properties from next year could push up rents as they look to recoup lost money.
A recent study by think-tank the Resolution Foundation found that the housing ladder is rapidly disappearing for most young working households on modest incomes. According to the research, over-45s now account for three-quarters of all home owners and that only one in 10 young people are likely to be on the property ladder in 2025.
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