Number of Young People in Rented Accommodation Has Tripled

Our current economic situation has left young people “increasingly stuck in rented accommodation”, according to the Resolution Foundation.

A number of factors have caused this, including the lack of mortgages available for first time buyers, high house prices, and stagnating wages.

The number of low and middle income (LMI) earners aged 35 and below who now reside in rented accommodation has more than tripled since the late 80’s, a rise from 14% to 47%, figures from the Resolution Foundation have revealed.  Their report shows that since 2005, the number of LMI’s aged below 35 who own a home has dropped from 51% to just over 33%.

The rising cost of housing is now also causing a problem to LMI’s under 35, with around a fifth struggling to pay mortgage or rent, according to the Resolution Foundation.

According to the report, LMI households now have to save for some 22 years before they will have saved enough money as deposit for the average first home.  In 1997, the length of time taken for LMI households to save a deposit was just three years.