Under-35s will have paid tens of thousands of pounds more on rent than previous generations, a new study has found, as rent costs spiral and fewer young people make it onto the property ladder.
Think-tank The Resolution Foundation said so-called ‘millennials’ will pay, on average, £44,000 more on rent by the time they turn 30 than the ‘baby boomer’ generation – and £25,000 more than the generation above, ‘Generation X’.
Around 63 per cent of baby boomers – those aged between 50 and 70 – had climbed onto the property ladder by the time they celebrated their 30th birthday, along with 60 per cent of ‘Generation X’ers (those aged 35 to 50).
By comparison, only 42 per cent of under-35s will achieve the same thing.
A report by the think-tank analysed Office for National Statistics (ONS) figures along with data from Halifax to examine home ownership rates and rental outgoings across the UK.
It found that the extra money the younger generation was having to spend on rent meant buying their first home was increasingly difficult.
Resolution Foundation senior policy analyst Laura Gardiner said the £44,000 difference was brought into context by the £33,000 average deposit needed by people to buy their first home.
“The nation’s housing crisis is perhaps the most visible example of growing inequality between generations,” she said.
“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.
“Britain’s continuing failure to build enough homes means that unless we change course the struggle of young people to own their home is only going to get worse.”
It comes as the Foundation prepares to launch its Intergenerational Commission on Monday, which will carry out an 18-month investigation into young peoples’ living standards compared to those in the past.