A record number of prospective home owners are facing up to a lack of mortgage finance and new building.
Millions of hopefuls trying to get onto the property ladder have been left with little hope of moving out of their rented homes. In England alone, more than 3.35 million households rent from a private landlord, an increase of more than one million since 2004-5. In addition, the past two years have seen a 10% increase in the number of tenants aged between 18-35 who previously lived at home, owing to difficulties in getting hold of a mortgage.
The latest HomeLet Rental Index has concluded that across 55% of England, renting has become unaffordable, calculated as more than one-third of average income being spent on rental costs. High levels of inflation and growing youth unemployment have contributed to current problems with securing a mortgage, but renting may also be too expensive for some younger people, especially those not presently employed.
Their prospects are further decreased by the record shortage of homes to let. An Association of Residential Letting Agents survey shows that there are more tenants than properties, and that tenants are staying in their properties for longer, reluctant to search for new accommodation in the current market.
Generation rent faces crisis as there are not enough properties and fewer mortgages available - Mirror