Money issues to fuel onset of generation rent

Rising house prices and a lack of available finance will force Britain to become a nation of renters, according to a new survey.

A report from Halifax shows that half of Brits believe the next generation will see households focusing on renting quality property rather than attempting to purchase their own homes.

One of the least optimistic groups in the survey turned out to be the youngest, as one in five 23 to 27-year-olds said they had no plans to move out of their rented accommodation.

A review of the study at aol.co.uk attributes this to a reluctance among younger Brits to live in a poorer-quality house while they save up enough money to purchase a home.

Meanwhile 57 per cent of prospective homeowners say they would love to purchase their own property if only the finance was available.

Craig McKinlay, mortgages director at Halifax, says Britain is heading for a period where the aspiration to own a nice home will simply be replaced by one to never own one outright.

He told moneyfacts.co.uk: “It seems that people are now beginning to accept a lifetime of renting and this would not only change the way the property ladder looks in the future, it could even bring into question whether or not it will exist at all for some people.”