Britain’s failure to build enough homes is set to put a colossal strain on the housing market when the Noughties baby-boomers hit adulthood in 2020, a report claims today.
Births in England between 2001 and 2011 totalled 6.9 million, a rise of 22 per cent on the same period a decade earlier, but only 1.6 million new homes were completed over the same period. Now a report from the National Housing Federation reveals that the jump in births, combined with a decade of insufficient house-building, could see millions of young people struggle with rising housing prices and rents, or live with their parents for decades.
It predicts that first-time buyer house prices will increase by 42 per cent by 2020, and estimates that rents in 2020 will be 44 per cent higher than they are today – forcing 3.7 million young people to remain living at home with their parents.
“We failed to fix the housing market for the Eighties baby-boomers because we simply didn’t build enough homes,” said Ruth Davison, National Housing Federation director. “Even with decent jobs, many are struggling to raise a mortgage deposit or pay their rent.
“The situation will be even worse for the Millennium children. If we expect them to take over the reins and drive the country forward, we must provide them with the foundations for a bright, stable future. We need to build more homes now.”