Richard Carr: How to get young people on the housing market?

Richard Carr believes that getting more people on the housing ladder will help solve the country’s housing crisis, but how can this be done?

Six million forced into poverty by private renting sector

According to recent research produced by the Joseph Rowntree Foundation (JRF), they predicted that the current generation of primary school children face paying private rents that are 90% higher than the cost of renting at the start of the recession.

Richard Carr Pod Apartment

A ‘Pod’ apartment of the future

The JRF predicts that the rising costs will leave six million private renters living in poverty by the year 2040.

Social rents could increase by 39%

JRF says that a decline in home ownership and social renting, twinned with a lack of development, will increase the problems future households face.

Staggeringly, they believe that just one in 10 will be living in social housing in 2040, down from 8.2 million now to 5.7 million in over 20 years’ time. Even worse, they estimate that social rents will increase by 39% to reach a whopping £92.10 in real terms.

Report findings

The report, which was taken from the start of the recession, highlighted these key points:

  • People who rent will be more than twice as likely to be living in poverty as homeowners in 2040.
  • Private rents are forecast to rise by 90%, twice as fast as incomes. The average private rent today is £132 per week – it will be £250 per week in 2040 in real terms.
  • If social rents continue to rise towards market rates, the cost of housing benefit could rise by 125% – adding £20 billion to the current bill.

JRF also detailed action points to help contain the situation:

  • Housing supply doubles to more than 200,000 units a year
  • Social rents continue to go up by inflation plus 1%, rather than move towards market rents
  • Housing benefit continues to support housing costs at similar levels
  • The fall in the proportion of affordable social housing in the overall market is halted

Focus on the youth

Commercial and Residential Development Consultant Richard Carr disagrees with the findings and believes that the country will build what can be consumed by the market, which is the strength of ‘capitalism’.

Richard is currently acting for a client who is addressing the issue by building ‘Pods’, small one bedroom apartments which feature a very high standard of fittings. They are small, but have a ‘wow’ factor, which will appeal to a younger market.

Richard believes that this type of accomdation will provide young people with an affordable route onto the property ladder.