A third of millennials face renting into retirement

A third of millennials face renting into retirement

Up to half of millennials in the UK could still be renting in their 40s, and up to a third could be renting into retirement, a report from the think tank the Resolution Foundation revealed last month.

A third of millennials face renting into retirement

Does this prediction surprise millennials? Unlikely... Fears over not getting on the property ladder pop up in conversation pretty frequently among those born in the '80s or '90s, it's fair to say. 

In a discussion about what to write about on MoneyLens recently, "I'm never going to get on the property ladder - what should I do instead?", was one of the most popular suggestions.

Many young people feel like they will be renting their entire lives. They accepted this forecast ages ago. It's good that everyone else is paying attention, because for some of them this could be a reality, as this outlook for 20-35 year-olds from the Resolution Foundation's "Intergenerational Commission" has shown.

A record 1.8 million families with children rent privately, up from 600,000 15 years ago. At age 30, four in ten millennials rent, double the rate for Generation X (the demographic cohort preceding the millennials) and four times that for baby boomers (born between 1946 and 1964) at the same age. 

And the think tank warned the rising share of "retiree renters", coupled with an ageing population, could more than double the housing benefit bill for pensioners from £6.3 billion today to £16 billion by 2060 - "highlighting how everyone ultimately pays for failing to tackle Britain's housing crisis". Great! 

Anne Ashworth, editor of the Bricks & Mortar and Money sections of The Times, tweeted after the report was released: "If one in three millennials will never own a home, as @resfoundation says, how will they afford rents after retirement? Very few members of Generation Rent have access to the gold-plated pensions available to older workers."

On that note, watch out for our piece, I'm never going to get on the property ladder - what should I do instead? Or read how MoneyLens' Louisa fell in love with renting. It's not all doom and gloom.

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