Youngsters Leaving Home set to Flood the PRS

21 June 2012 Categories: News

Youngsters Leaving Home set to Flood the PRS

A report compiled and released by the Joseph Rowntree Foundation has warned that over the next eight years the number of 18-30 year olds entering the private rental sector could number as many as 1.5million, so putting pressure on the sector and making competition for cheaper properties extremely fierce.

The report speculates that because of high property prices and an inability to save the large deposits needed by mortgage lenders, more young people are being forced to stay living with their parents into their early thirties, but by 2020 this scenario will have changed making it possible for youngsters to move out earlier, and possibly into privately rented accommodation.

While this is great news for buy to let investors and landlords, it isn’t good news for young families who will find themselves having to fight for properties in the cheaper end of the sector. The report, entitled ‘Housing Options and Solutions for Young People in 2020’ goes as far as to say that some young families will find themselves homeless or having to rely on emergency accommodation because of the predicted influx from the younger generation.

Programme Manager for the Foundation, Kathleen Kelly, commented on the findings of the report saying, “Our badly functioning housing system will see those on the lowest incomes really struggling to compete in the competitive rental market of 2020. Renting is likely to be the only game in town and young people will face fierce competition to secure a home in what is an already diminished supply of housing.”