Third of millennials face “renting from cradle to grave”

The foundation said a new generation of young people face the prospect of never owning their own home and more should be done to support young people’s home ownership aspirations.

The research, Home Improvements, found that at age 30, four in ten millennials live in the private rental sector and that more people this age are choosing to have children whilst living in rented accommodation.

It said policy has failed to catch up with the fact that bringing up children in the private rental sector has now become mainstream - research found 1.8 million families with children rent privately, up from 600,000 in 2003.

The research paper includes recommendations to help improve the housing offer for renters:

▪The introduction of indeterminate tenancies as the sole form of contract in England and Wales, following Scotland’s lead and the practice in Germany, the Netherlands, Sweden and Switzerland;

▪Light-touch rent stabilisation that limits in-tenancy rent rises to consumer price index inflation for three-year periods;

▪A new housing tribunal, to ensure landlords and tenants can have disputes resolved swiftly;

▪Support for councils should be introduced to get more affordable homes built.

Lindsay Judge, senior policy analyst at the Resolution Foundation, said: “Britain’s housing problems have developed into a full-blown crisis over recent decades and young people are bearing the brunt – paying a record share of their income on housing in return for living in smaller, rented accommodation.

“While there have been some steps recently to support housebuilding and first time buyers, up to a third of millennials still face the prospect of renting from cradle to grave.

“If we want to tackle Britain’s ‘here and now’ housing crisis we have to improve conditions for the millions of families living in private rented accommodation. That means raising standards and reducing the risks associating with renting through tenancy reform and light touch rent stabilisation.

“For any housing strategy to be relevant and effective for people of all ages, it must include this combination of support for renters, first time buyers and ultimately a level of housebuilding that matches what the country needs.”