Rise of the young renters

The English Housing Survey has revealed that a rising proportion of young people have been squeezed out of the housing market in England and are renting privately instead

The proportion of adults aged 25 – 34 years old renting privately has risen from 31% to 45% in four years, according to the report.

 21% of people in this age bracket were mortgage holders in 2008-09 However, this fell to 18% in 2012-13, with more renting privately, and so paying more of their income on housing.

 The annual report into the state of the nation’s housing market is produced by the Department of Communities and Local Government (DCLG).

 It found that on average, owner occupiers buying with a home loan spent 20 per cent of their income on their mortgage in 2012-13. Meanwhile, private tenants spent 40 per cent of their income on their rent.

 The statistics offer evidence that, especially during the financial crisis, young people found it difficult to get on the housing ladder, owing to stricter lending criteria from banks and a requirement to save for a large deposit.

 The survey also revealed that 61 per cent of private renters anticipated owning their own home eventually.