Whenever discussions shift towards housing affordability, the first thought that crosses many people’s minds is the ability to buy a house rather than rental affordability. In as much as we can go a long way arguing over whether or not youths need to give up their latte, or whether how worse or better the economy has grown or fallen over last 20 years or so, the issue of rental affordability needs to be equally paid attention to.
In the recent years, rental prices have been significantly dragged to the general low inflation growth. It is true that housing prices have risen by a notable margin. In some parts of the world it is at 1.2%.
Approximately two decades ago, almost 30% of first time home buyers were the young- just under 25 years of age. Currently, only 16% of first time home buyers are under 25 years.
Following reports from recent surveys, it is reported that more homes are rapidly becoming overcrowded as a result of house shares. It has led to scenarios where many young people are paying rent equivalent to half their salary or even slightly more.
Many young people find themselves paying a lot of cash commuting to work since they cannot afford to live in nearby residential.
On the other hand, many young people still prefer to live at home with their parents as it is the only way they can manage to save enough for a deposit.
You could be one of those still living at home; or you could be fortunate to have a nice job to handle your bills efficiently and even manage to spare towards a deposit. The glaring truth is that there are thousands of other young people who live, work, and commute within other expensive UK cities and aren’t quite so fortunate.
There are some people who may see this as a lifestyle choice- either way; the foundation should be the possibility of choosing between owning and renting a home affordably just like our parents did approximately 25 years ago. Today it’s more like the youths are forced into making certain choices.
In the end, it’s literally about having affordable, accessible housing, to rent or buy.
Many companies today are building more new homes than they have ever built in the entire 25 year history, sadly, they can’t be built quickly enough. Trying to keep up with this demand for affordable housing is not getting any easier