Shared house landlords should pick up tax breaks in a bid to encourage them to provide more homes, lower rents and longer tenancies to young renters struggling to find homes, according to a new report.
Giving landlords running houses in multiple occupation or buy to lets this financial incentive could ease a predicted housing crisis for 1.5 million young renters who will probably never afford to buy a home, says social care charity the Joseph Rowntree Foundation.
The study Housing options and solutions for young people forecasts around 500,000 young people will be forced to stay with their parents until they are aged 30 or more, making the total number of young adults who cannot afford to buy a home to 3.7 million by 2020.
In that eight years, the number of home owners under 30 will fall by half to 1.3 million.
Meanwhile, the number of homeless aged under 25 is predicted to swell to 81,000, with further increases expected.
As more young people rent homes, they will compete with other young families, poor and vulnerable home hunters for tenancies, with demand and a lessening supply of properties likely to push up rents unless the government intervenes.
The report suggests politicians should consider:
• Landlord tax breaks that give financial stimulus to cut rents and offer longer tenancies
• Setting up letting agencies to help young people find rented homes
• Schemes for providing more affordable homes for young renters
David Clapham, who co-wrote the study, said: "With 1.5 million more young people no longer able to become home-owners by 2020, it's vital we take the opportunity to make renting work better. To do this we need strong political leadership that is willing to work with both landlords and tenants to make it more affordable and stable for 'generation rent'.
"Young people are at a double disadvantage – it takes longer to raise enough for a deposit and their wages are generally lower. But there are simply not enough homes and those we do have cost too much to rent or buy. While more housing would help address this, it may not come quick enough for young people forced into renting in eight years' time."
