A third of millennials could be forced to rent in retirement, according to a report from the Resolution Foundation thinktank.
Up to half of that generation could also be renting into their 40s, and around 40 per cent are renting at the age of 30.
A Resolution Foundation statement says: “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.”
The thinktank says economic conditions may shift to favour cheap homeownership again, but that this is “(extremely) optimistic”.
The Residential Landlords Association says young people face a perfect storm when it comes to renting.
RLA policy director David Smith says: “Today’s report shows the perfect storm that young people face. With homeownership remaining difficult for many to access, demand for homes to rent continues to increase. This is at a time when Government tax increases are discouraging many landlords from investing in new homes to rent out.”