Think tank predicts third of millenials could be renting in retirement
Recent research suggests that up to a third of so-called ‘millenials’ could still be renting in retirement.
The report from the Resolution Foundation Thinktank also found that almost half (47%) of those born between 1981 and 2000 could also be renting past the age of 40, painting a fairly pessimistic outlook for those looking to take their first steps on the housing ladder.
A statement from the Resolution Foundation read: “Our estimates suggest that if recent conditions persist as few as 47 per cent of millennials (those born between 1981 and 2000) may own their own home by the time they reach 45.
“Some of the remaining 53 per cent may inherit property wealth that they can use to get on the housing ladder, but even under relatively optimistic assumptions this is only likely to increase homeownership rates in retirement to around 66 per cent.”
In light of this, it also mentioned the shift toward the private rental sector over recent years, stating that there was a need for radical reform to make it more suited to the needs of multiple demographics.
A Department of Housing, Communities and Local Government spokesperson said: “Our Help to Buy scheme and the recent cut in stamp duty are helping more young first time buyers get on the property ladder. Figures show that we are seeing the highest number of first time buyers for more than a decade.