Are you fed up of trying to save for a deposit on a house that feels like an impossible dream? Well, the government has finally admitted that home ownership isn't a realistic goal for millions of young people living in Britain. And although the problem is far from over, the government's pledge to support renters is surely a step towards a more affordable future.
So, what's changed? Today, the government released a white paper to combat Britain's 'broken' housing market, setting out plans to make renting more affordable, while increasing the security of rental deals and threatening to bring tougher legal action to cases involving nasty landlords. Hooray!
The focus on more rights for renters comes after the positive news in last year's Autumn Statement that letting agency fees will soon be banned (helped by The Debrief's investigation #MakeRentingFair). There's still no exact date though, with the white paper confirming it will be consulted on ‘early this year’, with legislation 'as soon as time allows'. You can read more about young renters who are still being billed with sky-high letting fees here (despite Chancellor Philip Hammond's promise to abolish them back in November).
The change in attitude towards renting drastically contrasts to that of former PM David Cameron, who tried to make home ownership happen on a nationwide scale with his vision for 'Generation Buy'. While many of us struggle to afford our rent each month, let alone save any money for a deposit, the reality remains that we're a generation of renters - and the government is finally beginning to accept this.
If you need reminding of just how much things need to change, 61% of a typical Londoner's wage goes straight on their rent. And, if you were planning on buying a house in the capital by 2021, you'd need to save £2,300 each monthto afford a deposit. That's £27,600 a year for four years. Yikes.
But today's white paper has brought the issues of Britain's 'broken' housing market back into the headlines. The 104-page document promises to build 25,000 new houses in Britain by 2020 and outlines a focus on supporting longer-term tenancies to 'give families the security they need', according to Communities Secretary Sajid Javid. So, long-term renting is rightly being recognised as a living situation that lots of Britons are finding themselves in. And ministers hope that building affordable new rental developments across the country will help deliver these promises, but people aren't sure if this will be really helpful to individuals already stuck in the private rental sector.
Graeme Brown, Interim Chief Executive of Shelter, said:
'It’s good to see the government paying much needed attention to the country’s appalling housing crisis in its new white paper, and the shift in focus from homeowners to the millions of struggling renters is right.'
'Talk of longer-term tenancies is welcome but risks being disingenuous unless these are rolled out across the board, not just for a handful of people living in new build-to-rent properties.'
'The scourge of inadequate tenancies, and indeed our broken housing system, are fuelled by the shocking lack of affordable homes available to rent or buy, so the government is right to want to "get Britain building".'
'The white paper poses the right questions, what we need now is quick and bold action that helps people in need of a decent home tomorrow not in ten years.'
But, of course, if you've been living without sackfuls of inherited wealth for a few years now, you don't need reminding of just how much things need to change. Today's announcement is a starting point - the government have begun to realise that renting is the new norm - and now we need to make sure it follows through with its promises.
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This article originally appeared on The Debrief.