Homes shortage badly affecting society – IPPR
The think tank’s 42-page report, No Place to Call Home, found that despite 88 per cent of young people aspiring to owning a home within the next 10 years, 51 per cent believed they would not be able to buy.
The IPPR polled more than 1500 people aged between 18 and 30 years old on their attitudes to home ownership, in addition to drawing on data from the yearly English Housing Survey, the University of Essex Understanding Society study of 2011 and two cohort studies of people born in 1958 and 1970.
Some 22 per cent of those living in a house-share felt that renting negatively affected their sense of safety and security, while one-fifth of 31 to 44 year olds without children said they would delay starting a family due to the lack of affordable housing.
Dalia Ben-Galim, associate director of the institute, called for an increase in house building and reform to the private rental sector to give families more security.
She said: “The lack of housing is stopping many from building careers and starting a family. Insecure renting stops them from putting down roots – but it is also bad for society too.”
The report predicted that by 2020 the number of young people who owned a home would decrease by 1.1m to 1.3m.
The number in their 30s living with their parents would grow by 500,000, and 1.5m more 18 to 30 year olds would live in private rented properties.
• The number of adults aged 20 to 34 living with parents has risen by 20 per cent to 3m since 1997.
• Research by the Equity Release Council found parents have helped more than 228,000 first-time buyers in the past years, providing more than £1.31bn in deposits for their children.
Jaskarn Pawar, director of Northampton-based Investor Profile, said: “Property prices are still relatively high, while the deposits needed are beyond most people in their 20s. I see clients all the time who have to support their children through university and then help them get on the property ladder.”