December 13, 2011
Young People Cannot Afford to Buy but Struggle to Pay Rent
It’s a well-known fact that young people (18 to 25 years) today find it virtually impossible to save the deposit needed to purchase their first home, but according to the letting giant Rightmove they also struggle to pay the high rental prices being asked by private landlords. Even with decent jobs that pay an average wage, young people in particular struggle to keep up with their rent payments, and many fall into arrears within the first 12 months.
But why is this?
According to Rightmove, a lot of young people looking for their first rental property are being forced to take on more than they can comfortably afford. Smaller properties with affordable rents are snapped up as soon as they hit the rental market and at present the demand far outweighs the supply. A lot of new rental instructions are family-sized properties that have failed to sell, but if time is short then a tenant will often consider any property with what seems like an affordable rent.
It is only after a few months of paying rent, council tax, utility, food and fuel bills that young people completely understand the true cost of renting a property. When asked about the number of tenant eviction cases they had seen lately, Paul Shamplina from Landlord Action said that the number had indeed risen, and that many did involve young people with severe rent arrears.
The question has to be asked then, what does the future hold for young people looking to leave the family nest?
