Rising rent and housing costs subduing people’s prospects

Increasing renting and housing costs are preventing young people in particular from moving around the country to secure a better life, according to a publication by the Resolution Foundation.

The think tank’s newest study describes living standard gaps between different parts of the UK widening over time, with new job opportunities largely found in cities and the south of England.

The author of the publication Lindsay Judge says that the rate at which individuals change residence has fallen across all age categories.

She says that this is particularly true for young people, despite a larger proportion of them being graduates and non-UK born.

Judge points to three fundamental economic explanations – first, that the ‘push’ of a lack of employment has diminished over time; second, the possibility that the ‘pull’ of more buoyant areas has fallen apace; and third, that changing housing costs may have acted as a “headwind or tailwind” when it comes to moving areas for work.

The report also highlights that 41 per cent of cross-local authority moves were to lower-rent areas between 2002 and 2003. In contrast, this figure stood at 47 per cent between 2017 and 2018.

Furthermore, the data shows that average commuting times have risen, from 25 minutes in 1996 to 32 minutes in 2017 for the age category 25 to 34 years.

Judge concludes that while younger people “are very much at the sharp end of the housing crisis”, all age categories are feeling the impact of rising renting and housing costs.

Recommended

1

Landlords see modest rent rise in April: Your Move

Rental prices continued to rise steadily in April across England and Wales, according to the latest Your Move tracker. The average rent was £861 in this period, 0.5 per cent higher than in April 2018. However these national figures mask considerable regional variation. In the West Midland rents jumped by 4 per cent over this […]

FCA interior 620x430

Mortgage broker earnings up 13% in 2018

Mortgage broker earnings were up 13 per cent between 2017 and 2018, representing a rise from £1.16bn to £1.31bn, according to data collected by the FCA. In relation to this, the figures show that a third of all earnings, £449m, came from selling non-investment insurance products. The regulator’s research shows that the average mortgage revenue […]

Health - thumbnail

Absence management systems gone AWOL from UK’s SMEs, reports Jelf

A quarter (23 per cent)* of the UK’s small to medium-sized enterprises (SMEs) do not have an absence management system in place, according to new research from Jelf Employee Benefits. Despite 69 per cent* of organisations having a system in place, three-quarters (75 per cent) report that it is not providing them with sufficiently empowering absence or health data to inform an effective wellbeing programme.

Newsletter

News and expert analysis straight to your inbox

Sign up