Young Britons hit hardest by housing crisis
PR consultancy MRM has released a report investigating the attitudes of "Generation Austerity," aged 20-29. Their results set today's young people radically apart from the rest of the population, in their attitudes to personal finance.
When asked what is the most important thing for you to save for right now, 37 per cent of generation A responded a house or a flat, more than double the UK average of 14 per cent.
With house prices rising at their fastest rate since 2007, Generation A are right to be worried about their prospects for homeownership.
In the first quarter of last year, the average amount needed for a deposit was £27,000, according to the mortgage lender Halifax. Housing charity Shelter has estimated that the average person saving on their own would need to save for 14 years before they can afford a house, while a couple would need 12 years.
Should a 20 year-old have the audacity to want to own a London property, it could take as long as 30 years to afford a 20 per cent deposit.
The government's grand solution to the predicament facing young people is its controversial Help to Buy mortgage guarantee scheme. Under the scheme customers will be able to buy a home with a deposit as little as five per cent.
The scheme has received widespread criticism from academics and economists. Increasing mortgage lending, without liberalising the planning system to increase supply, will leave young people unable to gain a foot on the housing ladder as the UK fails to take the necessary steps to expand its housing stock.