According to a recent study, the millennial generation will pay £53,000 on rent by the time they are 30.
Those in the millennial generation are people aged between 15 and 35, and according to a report produced by Resolution Foundation, they will pay £44,000 more than the baby boomer generation.
Baby boomers, those in the 50-70 age category, paid £9,000, in current values, in rent by the age of 30. The extra £44,000 paid by millennials equates to more than the average deposit needed to buy a home.
According to the think tank, this is due to a combination of fewer houses being built over the last couple of decades and rapidly increasing property prices. Resolution Foundation has stated that the reduction in the number of homeowners during this time has resulted in lower living standards for the younger generation, while older generations are comparatively wealthy.
Laura Gardiner, senior policy analyst, 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.”
Almost two thirds of people aged 50 to 70 owned their own home by the age of 30, in comparison with 42% of millennials. Furthermore, Gardiner added that people in the older generations are concerned at the difficulties experienced by younger generations and all age categories are calling for more affordable housing solutions.
Mortgage advisers spend time taking CeMAP training courses so that they have the required knowledge to provide advice and guidance to house buyers of all generations.