Housing crisis hits young people hardest
The research also shows that the number of young people in private rented accommodation who moved for a new job has almost halved in 20 years.
It said: “Young people today are very much at the sharp end of the housing crisis. They are more likely than previous generations to be renting privately as they approach child-bearing age; less likely to have the security and living standards protection afforded by a social tenancy; and more likely to be encumbered with a large debt if they have been lucky enough to get on the housing ladder.”
It said rising rents in more productive areas are acting as a headwind to labour market mobility. Those in older age groups may also struggle to bridge the widening housing costs gap
This echoed other research showing the difficulties facing the next generation. Close Brothers’ research showed half of non-homeowners (47%) don’t think that they’ll ever be able to afford to get on the property ladder. One in five millennials (20%) not yet on the property ladder have no desire to get on it in the future.
Jeanette Makings, head of financial education at Close Brothers said: “There seems to be a gap between perception and reality. While there’s confidence around affordability, a huge proportion of people’s salaries are going on housing costs. This makes saving for the future more difficult and contributes to the scale of uncertainty when it comes to taking the first step onto the property ladder.
“All of these issues can be improved by a solid financial education programme, supporting employees in their ambitions be they short or long term. Employers can help employees in this respect, improving their financial health and creating a happier and more productive workforce.”