‘Millennials’ will spend £53,000 on rent by the time they turn 30
That's £44,000 MORE than the baby boomer generation, says Resolution Foundation.
What’s the latest?
‘Millennials’ will have forked out £44,000 more on rent by their 30th birthday than the baby boomer generation.
According to think tank Resolution Foundation, baby boomers - those aged between 50 and 70 - typically paid £9,000 in rent in today’s money by the time they hit 30.
But the so-called millennial generation - those aged between 15 and 35 - will have spent an eye-watering £53,000 on rent.
And, the extra rent is more than the £33,000 average deposit for a first-time buyer.
Why is this happening?
The foundation said that decades of falling house building, coupled with rising property prices, has reduced home ownership for subsequent generations.
Who does it affect?
An "alarming" drop in home ownership over recent decades has slashed living standards for the young, and led to a further concentration of wealth among the older generations, according to Resolution Foundation
Senior policy analyst, Laura Gardiner, explained: “Young people today are paying a heavy price for decades of falling home ownership.
“The struggle to get on the housing ladder has left many of today’s millennials renting, at a time when it has become more expensive to do so.”
Sounds interesting. What’s the background?
Nearly two thirds (63%) of baby boomers owned their own home by their 30th birthday – compared to just 42% of millennials.
Gardiner added: "The good news is that older generations are just as concerned about young people's struggle to own their home, and support for house building is growing across all age groups."
The research comes just days after Prime Minister, Theresa May acknowledged that unless action is taken, "young people will find it even harder to afford their own home."
Article taken from http://www.zoopla.co.uk/discover/property-news/so-called-millennials-pay-44-000-more-rent-by-the-time-they-reach-30-than-baby-boomers-says-resolution-foundation/#z0iMOUoYuu3Shi52.99