Young renters face homes pressure
HOUSING: Young renters are “scrambling to stay afloat” and racking up debts as it becomes more difficult for first-time buyers to get on the property ladder.
The charity Shelter warned young adults are more in danger of homelessness than any other age group, due to costly private rents and insecure work.
YOUNG RENTERS are “scrambling to stay afloat” and racking up debts while trying to pay their bills as it is becoming increasingly difficult for first-time buyers to get on the property ladder.
The charity Shelter warned young adults are more in danger of homelessness than any other age group, due to costly private rents and insecure work.
Polly Neate, the chief executive of Shelter, told that the Government needed to look at extending the temporary ban on evictions past June 29.
She said: “Even at the best of times, young adults are more in danger of becoming homeless than other age groups as they’re more likely to be living in an unaffordable private rental or have an insecure job. And as the pandemic rages on, it’s proving even harder for many young people to keep up with their rent.
“Our services have heard from younger renters who are scrambling to stay afloat after their income has taken a huge hit or they’ve lost their job because of Covid-19.
“While they rack up debts that could put their home at risk, the end of the Government’s evictions ban looms ever nearer.”
Robert Winter, 25, has just completed his first year of a degree in international relations at Leeds University and is struggling to find the money to pay his rent during the summer.
Mr Winter, who lives in Leeds, is furloughed from his part-time job organising holidays for visually impaired people and bringing in far less than his outgoings.
With no financial support available over the summer for students and no right to access Universal Credit, Mr Winter said he will need to go into debt to pay his rent.
He admitted that he fears “playing a constant game of catchup” with his finances.
“It feels like I’m in limbo at the moment,” he said. “My original plan was to work as much as
I could over the summer to get a head start on finances and rent. Maybe this will still be possible but I am not feeling very optimistic.”
Research by an advocacy group, Generation Rent, last month found two-thirds of renters are worried about paying their rent over the next six months and 58 per cent are worried about being evicted.
A total of 15 per cent of those surveyed were already behind on their rent.
Nearly three-quarters of households where the head of the household is under 25 are renting privately, and a further fifth are renting a social home, according to data from the Office of National Statistics.
Young people who are looking to buy their first home are facing tough times as mortgage lenders have reduced the number of small deposit loans on offer and there are much fewer properties for sale.
This is further compounded as many schemes that previously helped first-time buyers have ended, such as the Help to Buy
ISA, which closed to new applicants last year.
Additionally, interest rates are at their lowest in 325 years, which makes mortgages cheaper, but also makes it harder to save the sum needed for a deposit.
Concerned that house prices may plummet after the pandemic, lenders have been more cautious than usual about lending to people who only have a small deposit, dropping nine out of 10 deals for 95 per cent mortgages.
In some cities in the UK, including Leeds, buyer demand is up 18 per cent on levels in February, according to analysis by the online property firm, Zoopla, although the number of properties available is not matching that.
It’s proving harder for many young people to keep up with their rent.
Polly Neate, chief executive of the charity Shelter.