Many young people have got used to the idea that they’ll never own their own homes. But is it really as bad as they’re making it out to be? Well, the housing charity Shelter has revealed how much generation rent will need to be earning to buy a home by 2020…
The older generation may believe that generation rent is too busy spending their money on hipster food and drink while passing their hours by on their smartphones, rather than saving their earnings for the homes they so desire. If this is the case, then why are so many young people stuck renting when they’d rather be buying?
Any hope that tenants may have of buying their own homes may well have been crushed by Shelter’s latest study, which shows that they’ll need to be on an average salary of £64,000 per year to buy a house by 2020.
Considering that the average national wage is £27,000 a year, this new figure seems unattainable at best, especially considering that house prices are rising six times faster than salaries.
And it doesn’t get any better – the Shelter report also revealed that prospective first time buyers will need a hefty deposit of £46,000 if they want to own their own homes.
The Chief Executive of Shelter, Campbell Robb, comments: “When house prices are increasing six times faster than the average wage, it’s no wonder people on ordinary incomes are being locked out of a home of their own.
“With the situation only set to get worse, generation rent will be forced to resign themselves to a life in expensive, unstable private renting and wave goodbye to their dreams of a home to put down roots in.”
But he doesn’t believe this situation needs to last.
“It doesn’t have to be like this,” Robb insists. “The Government has the power to turn our housing crisis around, but only if they stop with schemes like Starter Homes, which only help higher earners, and start investing in homes that people on ordinary incomes can actually afford to live in.”
Landlords, we encourage you to consider the needs of your young tenants by keeping your rents under control and providing them with safe homes that they’ll want to live in, before they can manage to buy a property of their own.