I have been giving serious thoughts to how my 2 teenage children will fare in their future attempts to get on the first rung of the housing ladder. Whilst I obviously love my children greatly, becoming an “empty nester” is not without considerable appeal. According to a recent report by the Resolution Foundation, I may however have much longer to wait. Apparently 40% of “millennials” – those born between 1980 and 1996 – live in rented accommodation by the age of 30, twice as many as “generation X” – those born between 1965 and 1980. The report concluded that up to a third of millennials face renting their entire life and/or remaining at home with their parents far longer than their predecessors did.
‘Generation rent’ as millennials are aptly referred to, require far more financial assistance to plant a foot on the much coveted property ladder. They are also strong advocates for more affordable homes for first-time buyers to be built, as well as better protection for residential property tenants. Renting for those with children does not provide the security needed to raise a family. The report further reveals that 1.8 million families with children rent privately, up from 600,000 15 years ago. Millennials are reportedly paying a record share of their income on housing in return for living in smaller, rented accommodation.
It’s not all negative news though. There is help to be had for those who know where and how to look. For instance, there have been some steps recently to support property development and first-time buyers. First time buyers purchasing properties up to £300,000.00 no longer pay stamp duty but young people are still having to save for years to raise the deposit for a house or rely on “the bank of mum and dad.” Purchasing your first home is a big step and an exciting time. At Arnold Thomson, we are here to assist you and guide you through the process. We will provide guidance and advice on how to manage your Help to Buy ISAs, stamp duty savings and gifts from family.
Alberta Reid – Director