One in three millennials will never own their own home, says study

 

The significance of owning our own home is instilled in us from a very young age.

From films all about the roof over our heads (think of Up) to what our own parents tell us, we have come to consider purchasing property a watershed moment in adult life.

However, in our current economy, this supposed right of passage is becoming less and less of a reality for millennials (who are aged 20 to 35).

A recent report from think tank the Resolution Foundation found that if homeownership rates continue to decline in the same way they have since 2000, a third of millennials will still be renting when they retire.

And while this notion is alarming, it's actually commonplace to rent for a lifetime in places like Germany and Switzerland.

The UK's homeownership rates currently stand at 63 percent, but Germany and Switzerland's rates fall far below that, in part because tenants have stronger rights in these countries.

Tenants can be evicted with only two months' notice, making the notion of long-term renting feel like an unreliable plan at times. 

Tenancies only last an average of 2.5 years, while in Germany the average tenancy stretches to 11 years.

The insecurity associated with private renting is of special concern as millennials begin to have children and raise families of their own.

In fact, the number of families with children renting privately has soared over the past fifteen years, from 600,000 to 1.8 million.

“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,” Resolution's Lindsay Judge told the Independent.

'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.”

With this in mind, the Resolution Foundation put forth the idea that 'indeterminate tenancy', which is used more often on the Continent, should be the only form of rental contract.

They also advocate for the introduction of an inflation cap on three-year rent increases.

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