Generation Rent!

by Mark Johnston

                                                        Generation Rent!

Owning a home is considered to be something to aspire to, but a recent survey showed that only a third of first time buyers believe that opportunities for them are set to improve in the future.

 As affordability and mortgage constraints continue to take hold, so does home ownership, for many it remains little more than a long-held dream.

 The net effect has been a growing rental market, buoyed by demand. With little hope of any change in mortgage availability, this is a trend that looks set to continue for some time to come.

There are now as many people renting privately as there are social renters and over a million families now live in rented housing.

The challenge of accessing mortgage finance is highlighted as a major barrier to first time buyers, who are often cited as the life blood of a healthy housing market.

It seems therefore that most people’s attitudes to renting for longer periods of time have changed over the last few years.

Changes in social housing provision have also resulted in a blurring of the lines between it and the private sector.

For those people who do not qualify for social housing but who also can not afford to buy their first property the private rental sector is the next best thing.

In today’s society there appears to be a growing number of people that are now choosing to rent for longer periods of time as they feel amongst other things that it allows flexibility, mobility and independence.

This movement of people into rented property has now been named “Generation Rent.” which is no mere marketing spin. This is a very real, and growing, section of society.

Many first time buyers think that renting is now an important first step on to the housing ladder.

This particular generation are beginning to understand that it will be longer before they can afford to purchase their own home than it was for their parent’s generation.

Research has shown that in 15 years time there will be more people in theUKrenting their homes than those owning them.

The Joseph Rowntree Foundation, which is a British social policy research and development charity, has predicted 1.5 million extra 18 to 30 yearolds will be priced out of buying their own homes within eight years, they will then flood the rental market.

 Jack Dromey, the shadow housing minister, said: “It’s an absolute tragedy that 1 million young people could be locked out of home ownership by 2020. One of the biggest consequences of the housing crisis is the rise of ‘generation rent’ as young people face a squeeze on their wages, increasingly unaffordable rents and greater difficulty saving for a deposit.”

In conclusion one thing is for sure, over the last six years it has become accepted that it is all right to rent which is good because at the rate the economy is going more and more people will become renters. This is why it is important that the government makes renting a better option than it is at the moment.

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