Young people and renting in 2024. CAEE Blog
It’s no secret that there’s a continuing housing crisis in the UK. And anyone who hasn’t noticed a shortage of decent accommodation affecting young people hasn’t been paying attention.
Ollie Smith is a communications and research volunteer at Citizens Advice Epsom & Ewell. (4 minutes)
Rented housing was a hot topic in the recent election and came after a protracted debate on the now side-lined Renters Reform Bill.
An inability to meet new construction targets has created a ‘housing backlog’ and shortfall of 4.3m homes by comparison with the average Western European country.
This has led to house prices increasing by over 173% since 1997 and an average first-time buyer age of 32!
Private renting
This would not be an issue if there was a readily available, affordable and good quality rental supply. But there isn’t. Average monthly rents in Epsom & Ewell have risen 10.7% since 2023, above the national and SE average. Renting is where many young people face the biggest challenges and the impact on their aspirations has been dire.
Raising the national stock of decent affordable homes is the only way forward. There was broad agreement between the previous and current governments on a need for some 300,000 new homes a year to ease demand. The inevitable questions young renters will ask however are: how long before it makes a difference, and will it happen at all?
In the meantime we will continue to highlight the local impacts in support of national policy improvement.
Mental health
Among the less visible recognised consequences for young people of poor housing is its part in causing a big increase in mental health problems.
Resolution Foundation reports the share of young full-time students with a common mental disorder is up 37%. There is little doubt that poor quality student housing exacerbates such problems. Nationally we help thousands of clients living in houses with mould, leaks, and safety issues. It’s clear that immediate action is necessary to alleviate the mental stresses it puts on renters.
Energy Efficiency Certification for the private rental sector (PRS) highlights the quality issue In Epsom & Ewell. The majority of houses in the sector are below Band C. Young people who are more dependent on rentals feel the impact disproportionately. Government plans for more landlord oversight may help but a minimum requirement for EPC would be a surer way to help young people cope with rising energy bills and rent.
Student issues
Rents have risen much faster than support for students in recent years.
The Higher Education Policy Institute recently reported that the maximum maintenance loan in England will increase by only 2.5% in 2024/25. This comes on top of Institute for Fiscal Studies research last year showing the maintenance package has fallen by 10% in real terms since 2020-21. Some of the poorest students are now losing out on £90 a month or £1000 a year.
For those already living at the margins, uncontrolled student rent prices are eating into maintenance loans more and more.
Students need stable and secure housing. University years are supposed to prepare a future generation not force them back into their parents’ home. This is a particular issue in Epsom & Ewell where 22% of families have ‘adult children’ living at home. Such a phenomenon puts more pressure on families with essential costs such as food and energy.
Demographic change
Whilst young people in Epsom & Ewell have been moving back in with parents, the median age of the area has increased as a whole as a result of unaffordability. The 20-24 age group fell from 5.6% to 4.9% compared to an increase in residents above 50. Is such a demographic change failing our young population? If so, what can be done?
Action to improve the local PRS must be an important way forward. Available housing is of poor quality and often unaffordable. Both factors contribute to the mental health crisis. New policies such as the extension of Awaab’s law (already in the social housing sector) into the PRS are welcome ways to increase landlord oversight and drive up housing quality.