Britain's young will be worse off than their parents

 
Michael Bow
Follow Michael

BRITAIN'S youth face a bleak future after new figures showed spiralling inequality between the country’s under-30s and the baby boomer generation.

Rising house prices and surging levels of public and private debt mean people in their 20s and 30s are facing a poorer future than their parents, with lower home ownership for young people driving up the amount they spend on renting.

Stark figures published by the Halifax yesterday show one in three young people abandon plans to buy a home after just three years of saving up for a deposit.

And a closely watched barometer of so-called unfairness between the generations shows prospects for young people have worsened in the past year as older peoples’ living standards have improved.

Infographic: Generation Y under pressure

“The housing boom for the older generation in London and south east is a housing crisis for the under-30s,” Angus Hanton, co-founder of Intergenerational Foundation (IF), told City A.M. “This is moving towards a feudal society.”

The IF Index, released today, shows unfairness between the generations rose last year to its highest ever level due to increasing levels of public sector debt, an uptick in unemployment figures and a £100 surge in the cost of the state pension for each person in the UK.

The study also shows an increase in the age of leaders tasked with solving the housing shortfall, with the average age of a councillor rising from 55 to 60 over the past 14 years.

A fifth of non-homeowners aged between 20 and 45 have already given up on the prospect of owning a property, the Halifax study shows, with a further 57 per cent concerned they will be unable to retire if they have to rent all their life.

Halifax Mortgages director Craig McKinlay said fewer and fewer young people considered home ownership as achievable and added that long-term renters never feel properly settled.