A third of 20-35 year-olds will be renting for life and raising their families in insecure private rentals according to a new report by Resolution Foundation.
The somewhat depressing predictions by the think tank’s commission warn that half of the 14 million millennials will be renting into their 40’s. The damning report demands that the private rental sector needs to rapidly change.
The standard contract for landlords is currently 6-12 months, which they suggest should change to “indeterminate” to provide more stability to renters.
The report equally advises the government to discourage landlords buying properties for profit and consequently shrinking the housing market.
They said: “The government should use the tax system to better purpose if it wants to re-balance demand. It should make it harder to become ‘over-housed’, tax second and reduce empty properties more effectively”.
Some millennials in Manchester said affording a home is already a preoccupation for them.
“Obviously it’s a nightmare because you save money having a mortgage it’s a simple as that.
It’s unfair that people who fall under a certain money bracket means they can’t afford to buy a house.
On top of that, the rental system in the UK doesn’t feel legitimate, it feels like they just want your money”, said 25-year-old Tony, a bar worker from Manchester.
One student at the University of Salford, told me renting is not all doom and gloom, as it provides a flexibility that allows you to travel more freely and move abroad for work.
“More millennials are going abroad with career choices and moving around, so for me it’s better to not be tied down to one location.
However I think the renting system needs to change. Landlords shouldn’t be able to overcharge like they do and take advantage of us. We need to have more control over rentals”.
Charlie, 22, told me it’s already a worry “at the pit of his stomach”.
He said: “It doesn’t keep me up at night – yet. I do think our generation have been unfairly treated. It’s already difficult to land a career, never mind finding a house and settling down. I try not to think about the future too much. Yes there are fewer strings attached to renting – but wouldn’t it be nice to own a house?”
Prices of rental in Manchester have risen by 6.5% in the past year, and continues to rise, as up to 10,000 apartments are either being built or are in the pipeline in Manchester city centre at present.
But who benefits from this housing boom? Not the millennials, say Resolution.