Home » First Time Buyers » Youth priced out of buying and renting

Youth priced out of buying and renting

The findings reveal how astronomical prices are damaging the emotional, social and professional lives of today’s young people, preventing them from growing up and living independent adult lives.

Key findings from the exclusive poll include:

* At a time when young people are facing extreme difficulties in finding jobs, high housing costs are affecting the ability of one in four 18-34 year olds to move for work, hampering economic recovery;

* 22% of 18-34 year olds have been forced to move back in or continue living with their parents because they can’t afford to rent or buy their own home;

* A worrying 20% of this age group are delaying having children until they can afford to buy or rent their own home, forcing them to give up on the hope of having a family of their own anytime soon;

* A shocking number of young people are stuck in relationships due to high housing costs.  A third (31%) of 18-34 year olds have had to continue living with a partner because they could not afford to live apart, or know someone who has.

Shelter chief executive Campbell Robb said: "It used to be the accepted path for young people that you grew up, moved out of the family home and started a life of your own.

"What this research shows is a fundamental shift in society, with young people today unable to make the same life choices as their parents and being robbed of the opportunity to lead full and independent lives.

"Yes housing has always been a major expense, but never before has a generation been faced with having to pay such a high proportion of their spending on a home of their own, whether renting or buying.  And what is so heartbreaking is that we are not just talking about this generation, but about future generations too unless we see some fundamental and immediate changes.

"There is a complete absence of any strategy as to how we are going to solve these absolutely fundamental issues.  The Government must act now and set out its plan for addressing our housing crisis, or face this and future generations being completely priced out of a place to call their own."

Have your say on this story using the comment section below

0 thoughts on “Youth priced out of buying and renting

  1. Excessive lending by the banks caused the property boom and the changes to Stamp Duty have just prolonged the problem by not allowing the market to recover – see http://www.ipinglobal.com/ipin-live/365060/stamp-duty-and-the-death-of-the-first-time-buyer

    The government has still yet to realise it cannot lend its way out of a recession with high LTV mortgages and propping up the banks.

  2. Assetz Homes says:

    There are options out there for first-time buyers, as we clearly displayed at our first-time buyer workshop on Wednesday. There are more and more 95% mortgages coming on the market daily, some which even allow you to borrow up to 5x your income…

    It’s not all negative, and as long as first-time buyers keep hearing bad press, they will believe it and loose hope.

    It IS possible to obtain a mortgage and it IS possible to buy a house, first-time buyers need to correct guidance, information and positivity from others to believe so though.

    At our first-time buyer event this week, people were astonished at some of the facts and figures we presented them with; it just shows that all the bad press is leading people to beleive the can’t do it… Shame…

  3. Ann Law says:

    I totally concur with Assetz Home comment above. There are options for young people out there. Being in my early 20s, I see a generation prioritising their enjoyment of life on holidays, eating out, social networking, drinking and generally speaking ‘going out’. Those in work spend flambouyantly and many of my friends don’t save regularly and of course, pay rent. My point of view is that there needs to be a change of mindset, a fresh direction which needs to be led by example and good advice; parents, those in spheres of influence and the powers that be. Even fellow young people need to step up. For a brighter future, we need to make it so. We spend so much time contemplating what other people/govt/charities need to do for us… how about use your own hands and feet, and brain? We love to shift blame. Isn’t that a really dull way of living life? Times are difficult and challenging (I acknowledge that) but can we not be once be thankful? Unlike our grandparents or great grandparents, we don’t have to live through a world war. Stop listening to all the bad stuff and make the good stuff happen for yourself. I totally believe in the capacity and capability of the current generation and those to come.

  4. Whilst I won’t debate the fact that 95% LTV mortgages are out there and the ability to borrow 5x income is possible too – the fact remains that if you borrow at that kind of level right now, with interest rates as low as they are – when interest rates start to rise (which is inevitable) – all of a sudden overexposure becomes very apparent.

    I agree – more advice and quality advice for first time buyers is needed, as well as explaining how much a 1% or 2% rise in interest rates is going to cost. If you are already at 5x income – where does the money come from?