Wednesday, 13 June 2012 8:47 AM
The housing crisis is set to lock a million more young people out of home ownership by 2020, according to a report by the Joseph Rowntree Foundation (JRF).
The report by a team from Cardiff University says that the number of home owners aged under 30 will halve to just 1.3 million over the next eight years.
An extra 1.5 million 18 to 30 year olds will be forced into private renting while an extra 500,000 will have to stay with their parents well into their 30s. In total, 3.7 million young people will be living with their mum and dad by 2020.
Meanwhile, the number of homeless people under 25 is predicted to rise to 81,000 with further increases expected.
The influx of young people into the private rented sector risks squeezing out young families, and poorer and vulnerable households. An extra 31,000 young families will be looking for private tenancies by 2020.
The report warns of a three-tier market developing for private rented housing, between those at the top who can afford to pay, a squeezed middle who will struggle and a bottom rung of 400,000 who could be excluded completely.
The authors recommend that landlords should get tax breaks if they offer more affordable and secure tenancies, the expansion of local lettings agencies to act as brokers between tenants and landlords and the construction of more homes.
Kathleen Kelly, programme manager for place at the JRF, said: “Renting is likely to be the only game in town and young people are facing fierce competition to secure a home in what is an already diminished supply of housing.
“With 400,000 vulnerable young people, including families, on the bottom rung of a three-tier private renting system we need to avoid turning a housing crisis into a homelessness disaster.”