housing supply

I’m at an RSN seminar on ageing issues today. This is a really hot topic in our discussions. Blockages in the housing system back up all the way to the other end of the age spectrum with too few houses for the elderly to downsize into. The article tells us:

Almost 60% of 20- to 39-year-olds in England will rent their homes by 2025, while just 26% will have got on the housing ladder, research shows.

“Generation rent” will find it increasingly difficult to buy and are likely to be older than previous generations before they can afford their own home, according to the report by PwC, which builds on analysis of the housing market published in the summer. High prices and deposits as well as rising interest rates will put young adults at risk of being locked out of property ownership.

The biggest shift in tenures is expected to be among 25- to 34-year-olds, PwC said, with two-thirds of households living in private rented accommodation by 2025, compared with 48% in 2013. A third of those aged between 35 and 44 will be renting in a decade’s time, compared with 24% in 2013, and among 45- to 54-year olds the figure will have risen from 15% to 21%.

Across the 20-39 age group, only 26% will own their home by 2025, down from 38% in 2013.