Would be first time buyers with families could face a wait of more than a decade before they can get themselves on the property ladder and the wait rises to 14 years for single people, according to an independent report commissioned for housing charity Shelter.
It says that these long waits for ‘generation rent’ to get on the housing ladder mean a significant shift in the way young people are living their lives and will have an impact on families all over the country.
Many young people will be left trapped in uncertain private renting, facing years of soaring rents, short-term lets, and unexpected letting agent fees. Others will have to live up to the reality that living with mum and dad, even into their mid-thirties, might be the only option left.
‘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,’ said Shelter chief executive Campbell Robb.
‘It is right that people work hard and save up if they want to own a home, but the government has to start meeting people halfway. Unless we see radical action to tackle our chronic shortage of affordable homes, the next generation of young people will find it even harder to find a place to call their own,’ he added.
The Nationwide Building Society welcomed Shelter's call for more affordable housing to be built to help young people buy their own home. Nationwide, which is a partner to the charity, lent a record number of mortgages to first time buyers last year, but agrees more could be done to free up the market for people at the bottom of the property ladder.
‘Nationwide is supporting young people by helping first time buyers get a home of their own; last year we provided 42,000 first time buyer mortgages. However, a major factor stopping more people from buying is the low supply of affordable homes,’ said Stephen Uden, Nationwide's head of citizenship.
‘We echo Shelter's call for action to build more houses to boost the supply to first time buyers. We have also called for the reintroduction of a stamp duty holiday for first time buyers and the complete overhaul of the stamp duty system. This would be fairer to those buying their first home and would also encourage second steppers to move, freeing up more homes for people starting out,’ he explained.
‘Last year, Nationwide pledged to help 750,000 people into a home of their own over five years, to 2017, and is working with Shelter to achieve this. We look forward to continuing that relationship in further support of first time buyers,’ he added.
