Young people in the UK are finding themselves locked out of the property market, according to research commissioned by Shelter. Across the country, would-be first-time buyers have little hope of owning a home and are forced to delay property investment due to high deposit requirements. In fact, young people with families may have to wait more than a decade before they can get on the property ladder. For single people, this delay rises to a massive 14 years.
With homeownership a far off dream for many, generation rent is expanding and families are having to change how they live their lives. Shelter claims people will be trapped by uncertain private renting, facing years of soaring rents, short-term lets and unexpected letting agent fees. For some, they may even have to live with their parents into their mid-thirties.
Shelter chief executive Campbell Robb said: "This research reveals the harsh reality that young people today are facing because of our shortage of affordable homes. These shocking results show that when it comes to saving up for a home of your own, things today just aren’t what they used to be. It’s right that people work hard and save up if they want to own a home, but the government has to start meeting people halfway."
He added that unless there is "radical action" to create more affordable homes in the UK, the next generation will be unable to own their own property. However, there are those that believe the inability of people to afford to get on the property ladder is all that is keeping a cap on prices. Fathom Consulting has heavily criticised the Help to Buy scheme for this very reason, claiming it may lead to housing bubble.
Andrew Brigden, senior economist at the company, explained that the policy is "reckless" and incentivises banks to lend to risky borrowers. Ultimately, this could cause significant damage to the property market. Fathom Consulting claim the scheme could cause the price of the average home to rise to GBP 300,000.
- Friday 21 June 2013