More and more Britons could be stuck living with mum and dad in the future due to the lack of housing. A new report by the National Housing Federation, entitled 'Housing Britain's Future', showed that when Noughties baby-boomers reach adulthood in 2020, the housing shortage will mean many will be unable to get a foot on the property ladder. Rising housing prices and rents will potentially price a generation out of the market.
According to the report, births in England between 2001 and 2011 totalled 6.9 million, but just 1.6 million new homes were completed over the same period. With first-time buyer house prices increasing by 42 per cent between now and 2020, not to mention a 46 per cent rise in rents, it is perhaps unsurprising 3.7 million young people will be living with their parents by 2020.
Ruth Davison, National Housing Federation director, said: "We failed to fix the housing market for the Eighties baby-boomers because we simply didn’t build enough homes. This means that, even with decent jobs, many are now struggling to raise a mortgage deposit or pay their rent. But rather than learn from past mistakes, the country is still not building enough homes to tackle the problem."
Ms Davison believes the situation will in fact be worse for Millennium children unless the government can deliver a long-term housing solution. "If we expect them to take over the reins and drive the country forward in an increasingly competitive global economy, we must provide them with the foundations for a bright, stable future," she said.
Stimulating the construction of new homes will also help to create jobs in the near-term. Luckily, with the government's new Help to Buy scheme and Funding for Lending, there is certainly the incentive to get building and demand is increasing for new-build properties. London mayor Boris Johnson has also been particularly instrumental in encouraging new affordable housing developments in the city, but more need to be created elsewhere.
- Friday 26 July 2013