Many youngsters ‘may never buy’
Out of the property market hiatus of the past few years ‘Generation Rent’ have been born.
And says the highly respected Joseph Rowntree Foundation, this group of over one and a half million 18-30 year olds may in many cases never get to buy a home in the foreseeable future and will be forced onto the rental market long term or even for ever.
The Foundation points out that young people are right now at a double disadvantage as it takes longer to raise enough for a deposit and their wages are generally lower. Also the Foundation say there are simply not enough homes right now and those available cost too much to rent or buy.
This gloomy outlook is not however the way ALE’s Paul Ainsworth Lord sees it. He says he’s hopeful that things won’t prove as bad for the so called ‘Generation Rent’ as the Foundation suggests.
Says Paul “It is true that there’s been a fundamental change in the balance of the property market as opposed to say even two or three years ago and that for youngsters its often ‘a real big ask’ these days to get the deposit and mortgage they need to buy a home.
Better financial outlook
But having said this, I still remain hopeful that an improved general financial situation – and it will come in time – will allow homes to become more affordable for young people to buy.
I feel the older, more established young people in this 18 – 30 age group will in time get to clamber onto the home buying ladder and thus avoid being forced into rented accommodation or settling for that long term stay at home with parents.
Some are getting there though – which is good news. We have helped and assisted a good few to their first homes since the start of the year. No, it isn’t easy for them, it is true, but it is still happening and I am hopeful that some at least will go on doing so in the future..