Major changes needed to make property ownership more affordable says UK charity
14-06-2012
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Many may never being able to afford to buy because property prices are now beyond the reach of tens of thousands of first time buyers, according to research published today (Wednesday 13 June) by the Joseph Rowntree Foundation.
At present, around 2.4million people aged between 18 and 30 live in privately rented accommodation but without a sustained and long term increase in new housing supply aspiring home owners risk maintaining the inflated house prices they are meant to overcome, it says.
It calls for a renewed focus is needed on improving the supply, quality and stability of housing in both the private and social rented sectors and points out that more stable private rented tenancies might be achieved through smarter incentives for landlords.
International evidence suggests that these could include tax breaks in return for more stable, longer term tenancies for vulnerable or lower income tenants and/or other benefits such as lower rent levels.
Social landlords could help tackle the challenges facing young people by helping them to access private rented tenancies and offering more shared tenancy options at local housing allowance rent levels as part of a varied housing offer.
Without fundamental reform to the housing system to create suitable options, young peoplein 2020 will be increasingly marginalised in a badly functioning housing system.
It predicts that in 2020 young people are likely to stay at home for longer, and parents will play an important role in facilitating access to owner occupation. Young people who choose not to stay at home will remain in the private rented sector into their 30s.
‘The challenges facing young people by 2020 will require fundamental changes to the UK housing system. Young people are particularly vulnerable in a badly functioning housing system due to their lack of resources and opportunities,’ the report says.
The study's findings bring into sharp relief the relationship between low housing supply and high housing costs. It is widely recognised that initiatives to enable young people to access home ownership, such as shared equity schemes, could exacerbate affordability problems. While these may help in the short term, without a sustained increase in housing supply they will not address the issue of affordability in the long term.
‘In 2020, young people will be further marginalised within a badly functioning housing system. Responding to the housing challenges facing young people in 2020 will require fundamental interven tions in the UK housing system,’ the report adds.
‘There is a particular need to reform the private rental sector, balancing the interests of both landlords and tenants. The growing number of families living in the private rental sector will create a need for more stability in the sector,’ it concludes.
