Britain’s failure to build enough homes will put a colossal strain on the housing market when the Noughties baby-boomers begin reaching adulthood in 2020.
A report from the National Housing Federation, shows how a jump in births combined with a decade of insufficient house building will see millions of young people struggle with rising housing prices and rents, or be forced to stay and live with parents. The report shows that:
* Births in England between 2001 and 2011 totalled 6.9 million – a rise of 22%; * Over 1.6 million new homes were completed over the same period; * First-time buyer house prices will increase by 42% by 2020; * Rents in 2020 will be 46% higher that they are today; * 3.7 million young people will be living with parents by 2020.
National Housing Federation director Ruth Davison 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. “The situation will be even worse for the Millennium children. Seven years from now the eldest will be young adults, looking for work, seeking independence and dreaming of living in their own homes. 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. “Our Government must look far beyond future elections and deliver a long-term house building programme that will create jobs, pump money back into the economy and give hope to millions of young people. Britain must say yes to more homes now. The future of the country – and our young people – depends on it.”
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