One in three young may never own their own home, a damning report has warned.
The Resolution Foundation says more needs to be done to support young people who want to buy a home, or they will face a lifetime of renting.
The think tank is urging policymakers to do more to reform the private rented sector to help those who face the prospect of never owning their own home. It says more homes need to be built to help tackle Britain’s housing crisis.
Lindsay Judge, senior policy analyst at the Resolution Foundation, says: “Britain’s housing problems have developed into a full-blow crisis over recent decades and young people are bearing the brunt.”
Some four in 10 millennials – those born between the early 1980s and mid-1990s – still live in rented accommodation at age 30, which is more than double the rate of the previous generation and four times that of baby-boomers when they were the same age.
A record 1.8 million families with children now rent privately – up threefold from 600,000 just 15 years ago.
Despite that, one in four properties fails the decent homes standard, while many tenants are on short-term six- or 12-month contracts, putting them at risk of large rent rises at short notice.
The foundation says the rapid growth of private renting shows “millennials’ access to social housing has fallen as fast as their homeownership rates”.
It is calling for limits to rent rises, the introduction of a housing tribunal to resolves disputes between landlords and tenants and an end to landlords being able to stop tenancies at short notice without good cause.
Ms Judge adds: “We have to improve conditions for the millions of families living in private rented accommodation. That means raising standards and reducing the risks associated with renting through tenancy reform and light-touch rent stabilisation.”