Manchester Property News

Generation Rent?

David Boyd Jun 22, 2011, 11:07 AM

I read with some sense of irony the research recently instigated by the Halifax on the social trends and views of First Time Buyers.  The research 'discovers', that due to the banks requiring huge deposits, first time buyers can no longer afford to buy a home, but now must join 'Generation Rent'.  I would have thought that this would be self-evident, and ought to embarrass the banks, but seemingly not.

Interestingly the research demonstrates that the greater majority of people desire to own their own home (77%).  Therefore we haven't seen a step change in the British psyche as the title 'Generation Rent' suggests, only that due in part to the bank's currently lending criteria, first time buyers, can no longer afford to buy a home and must now rent.  The study suggests several outcomes of this avoidable phenomenon, but the most concerning is the reduction in social mobility i.e. the wealth gap between the have and have nots is likely to widen considerably.

Of course it isn't just the banks fault, a culture of saving needs to be rekindled in Britain, but due to the banks setting an unrealistic high bar for deposits, more young people are likely to dismiss the opportunity and not bother saving at all for a home.  Landlords are likely to benefit from the the banks grip on mortgages, forcing more people into rented accommodation and for far longer.

The Government have policies such that emergency services cannot strike, so that the country does not grind to halt.  Financially we need more than words to ensure banks lend responsibly (which doesn't mean they don't lend at all), otherwise the banks may cause the housing market to grind to halt, and the UK economy as a whole.

Load more comments
Thank you for the comment! Your comment must be approved first
comment-avatar

Join our Newsletter

About The Blog

This Blog looks at what is happening in Manchester, the property market, events and community news along with investment ideas and tips for those loosing to invest in the area. 

Tom Simper - Editor

TomS - Head











Manchester is one of the fastest growing markets in the country.  If you need any assistance buying, selling or letting properties in the area we have over 30 years of experience and local knowledge to help.

T: 0161 441 0563
E: [email protected]

""Very Friendly & Helpful""

- Dylan

"Very professional and thorough with the information"

- Kara

""Staff Professionalism""

- Mr Horn

"Very Happy"

- Janet

"Helpful polite. Helped me greatly at a difficult time"

- Shahina

"Excellent / Friendly Service"

- Martin

"100% recommend this company"

- Jess

"Great customer service"

- Alex