Millennials spend three times more of income on housing than grandparents
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A study launched by former Conservative minister David Willetts has found that millennials are spending three times more of their income on housing than their grandparents, yet are often living in worse accommodation.
The generation, who are currently aged between 18 and 36, are typically spending over a third of their post-tax income on rent or about 12% on mortgages, compared with 5-10% of income spent by their grandparents in the 1960s and 70s.
Despite this increase in spending, young people are more likely to live in overcrowded and smaller spaces and face longer commutes.
The research also shows that today’s 30-year-olds are only half as likely to own their own home as their parents. They are also four times as likely to rent privately than the generations before them, engaging with the sector with the worst record of housing quality.
A typical young family today has to save for 19 years on average in order to afford a deposit compared with 3 years for the previous generation.
The man behind the study, David Willetts said "This is the biggest problem facing the younger generation. It depresses their living standards and quality of life. It is very important for the Tory party to open up the route to home ownership again. A lot of twentysomethings also have horror stories of bad landlords and we need to help them as well."
Dan Wilson Craw, director of campaign group Generation Rent, said "Young adults have been hit with a double whammy of rising house prices which make ownership unaffordable, and rising rents which they cannot escape. The chorus of demands on the government to act decisively is getting louder, but it’s important not to neglect the growing numbers of older renters. Because getting a mortgage becomes harder beyond the age of 40, many face a lifetime of renting."
Image courtesy of Kokai.