Born in the 1980s? Forget having a place of your own

High rents will continue to make it difficult for young people to save for a mortgage deposit (Picture: PA Wire/Press Association Images)

Baby boomers of the 1980s to noughties face an uphill struggle to buy or rent a home over the next seven years.

Rents in 2020 are expected to be 46 per cent higher than they are today. By the time noughties children start university or a new job, they could be even higher.

Research by the National Housing Federation (NHF) estimates that the average first-time buyer's home will cost £245,165 in 2020. The current national average price for all homes is £239,000.

The study goes on to warn that the shortage of affordable housing will mean 3.7million young people will be living with their parents by 2020, an increase of 700,000.

'Because we aren't building enough homes, house prices continue to rise,' the report states.

'This increases demand for private rented accommodation which, in turn, pushes up rents.

Buying a house could become an more unlikely dream for many (Picture: PA Wire/Press Association Images)

'High rents make it very difficult for young people to save for a mortgage deposit - the amounts of which will continue rising because house prices are going up.'

The report says that unless Chancellor George Osbourne does more to increase new homes there will be another 'house price bubble'. It points out that making mortgage deposits cheaper without increasing housing will 'not heal our critically injured housing market'.

NHF director Ruth Davison called on the government to learn from past mistakes.

'To solve this housing crisis, we need to build more homes now,' she said.

But housing minister Mark Prisk said: 'This report does not take proper account of the range of measures we've put in place to create a bigger and better private rented sector.

'That includes the £1billion Build to Rent fund and £10billion in loan guarantees to build new homes specifically for private rent. We're investing billions of pounds in an affordable homes programme that will lead to the fastest rate of house-building for two decades.'

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