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December 15, 2018

Young Britons may never have their own home

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britain homeGenerations of young people in the UK may never have their own home and live on rent during whole life. This is clear by the Resolution Foundation, according to which up to one-third of the Y generation (born between 1980 and 2000) will not have their own home. According to the institute, the radical reforms in the private property sector are needed to meet demand.

The Institute proposes new tax reforms to prevent the ownership of several homes and to support home ownership by young people along with support for local authorities to provide more affordable housing. The Resolution Foundation also warns that authorities can not afford to overlook poor quality and uncertainty in the private rental sector.

The rents on private housing have risen rapidly in recent decades. At the age of 30, 40% of young Y generation live in rent, twice as much as the generation X and four times as much as baby boomers when they were of the same age. At the same time, the access to municipal housing decreases just as quickly as the level of ownership of a home.

With a view to improving the rented housing, the Foundation calls for the introduction of open-ended lease contracts as the only form of contract in England and Wales, following the example of Scotland. Such contracts are also common in Germany, the Netherlands, Sweden and Switzerland.

In addition, according to the institute, the right balance needs to be struck between the needs of the tenants and the rights of the owners. The resolution notes that an owner can force a tenant to leave the home if he does not pay the rent, does not care for the property or if the owner wants to sell the dwelling or re-enter it. However, he can not simply terminate the lease with a short notice without a good reason. The Institute also proposes the creation of new housing courts to resolve disputes between owners and tenants quickly.

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