Soaring property prices are making more neighborhoods inaccessible to the under 50s, report reveals
Property prices have been making some neighborhood inaccessible to young people (under 50) the segregation is due to high house prices.Social rent homes funded by the goverment have fallen to fewer than 10,000 according to a recently revealed report.
Figures show that fewer than 70% of social rent homes (where the rents have been capped) came into the market in the period 2014-2015, compared with the five years prior at the end of the labor government. 40,000 additionally affordable rents properties have become available however these are up to 80% or the market rate, this is much higher than that of social housing.
This all adds up to rents skyrocketing and a lack of discounting houses creating a segregation between areas of sociability, the numbers of neighbors where half the population is aged over 50 has risen 7 times from 65 in 1991 to a staggering 485 in 2014 from a report by Intergenerational Foundation (IF).
IF co-founder Angus Hanto said: “Just 5% of the people living in the same neighborhood as someone under 18 are over 65, compared with 15% in 1991. This is hugely damaging to inter-generational relations. It weakens the bonds between the generations and leads to a lack of understanding of, and empathy for, other generations.”
“We believe that the housing crisis is driving this trend, with older generations enjoying either rural or leafier suburban living, while young people are concentrated in rental properties in the center of towns and cities.”
Failures to keep up with social housing schemes and current governments focus on increasing home ownership compared to creating cheap renting options has forces people into expensive housing associated properties or into the hands of private landlords.
It is thought that a lack of affordable homes has increased rents that feed into higher social security costs. The housing minster of the last labor government John Healey said:
“It’s now clear that George Osborne’s decision to slash housing investment was the opposite of a ‘long-term economic plan’ – saving in the short term only to pay in the longer term in higher housing benefit costs.”
“It has also exacerbated the shortage of genuinely affordable homes. Theresa May must take this opportunity to break with six years of failure on housing and invest in genuinely affordable homes again. Building many more council and housing association homes isn’t just good social policy, it’s good fiscal sense too – saving money for the public purse in the long run.”
There are signs that the new government has switched its focus from schemes to help increase home ownership to help those seeking low rents in all the parts of the country.