Younger generation may rent for life
Last week I spoke about higher prices in the Ealing area, partly due to an increase of foreign cash buyers on the scene. For homeowners, this is a boon – they are finally seeing prices increase and getting a return on their investments.
Unfortunately, there’s a downside to this trend. Inflating prices in the property market will make buying that first home even more difficult – if not impossible – for younger couples. Today’s younger generation may find themselves renting for life. With rents also on the rise, residents will find it harder and harder to find any type of suitable housing that they can afford. This is a dangerous and sad social dilemma we face.
Of course, not all of the UK (or even the greater London area) has been a beneficiary of price inflation. Outside of London especially, housing is more affordable and prices are in decline in many areas. Londoners could move away into these areas, but jobs then become an issue. In some respects, it’s a no-win situation for today’s youth.
The current property situation has pushed more and more residents into council housing and onto Housing Benefits. Landlords typically shy away from Housing Benefit recipients, right or wrong, due to difficulty in ridding themselves of ‘bad’ tenants and the pitfalls in the system itself. This leaves citizens with few options and little hope.
The Government has notoriously failed on its decades-long promises to adequately address the problem. There have been initiatives to be sure – with few results other than stalled developments and inadequate funding toward building affordable housing for the next generation or even generations that come after. Whilst over the past year the Government has made several attempts at implementing new schemes aimed at addressing the housing crisis, may believe it is a continuation of the too-little-too-late policies of the past. For instance, whilst the NewBuy scheme allows for smaller deposits, it fails to address the heart of the matter: the lending industry’s stranglehold on the property market.