YOUNG families are being crammed into smaller and smaller homes as rents are hiked, landlords sell-up and people struggle to save for a deposit.
That’s the findings of damning new research carried out by financial provider Hargreaves Lansdown.
Getty – Contributor Young people are more than FOUR times more likely to downsize than baby boomers
Its survey of 2,000 people found that younger people are four times more likely to be planning to downsize this year than those aged 55-plus.
More than one in ten (12 per cent) people aged 18 to 34 said they were planning to downsize this year compared to just 3 per cent of so-called “baby boomers”.
Hargreaves Lansdown found that “generation rent” have been forced to downsize as available rental properties dwindle and the ones left on the market continue to rise in price.
One in four landlords are considering selling up over the next year, a study by the Residential Landlords Association (RLA) recently found.
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The landlord can use eviction procedures to get you to leave earlier, but if that’s the case, you should check if the eviction notice is valid.
They can terminate a contract early in the following ways, according to The Tenants Voice:
Serving a section 21 eviction notice
Serving a section 8 notice (if they want to sell or move in) but only if you’ve breached the tenancy agreement, for example if you haven’t paid the rent on time
Obtaining a possession from the court and have bailiffs enforce it
Using a special “break clause” in the tenancy agreement that allows them to end the contract early
Ending the tenancy on your agreement
If the landlord hasn’t protected your deposit properly or provided a gas safety certificate, then you can’t be evicted under the Section 21 “no fault” process, said Generation Rent.
If you think the eviction isn’t valid, you should seek legal advice. You can find more tips on how to challenge your eviction on Citizens Advice.
It comes after the Government started cutting tax breaks for landlords, such as buy-to-let mortgage relief, and increased stamp duty on second homes.
A ban on unfair letting fees from estate agents and landlords as well as a cap on tenancy deposits to five-weeks rent are also expected to push rents up by up to £100 a month.
And figures from property portal Rightmove suggest that renters still face forking out up to £2,500 for upfront deposits even after the ban comes in on June 1.
Meanwhile, the average UK house price was £227,000 in March 2019 – according to the Office for National Statistics’ latest data – £3,000 higher than the same period a year ago.
Sarah Coles, personal finance analyst at Hargreaves Lansdown, says this can lead to an insecure lifestyle for many.
She said: “Generation rent is being squeezed out of the property market and crammed into smaller and smaller homes.
“Not only does this mean an insecure and peripatetic lifestyle, but as rents rise, tenants may be forced to keep downsizing in order to keep a lid on costs – especially if they’re simultaneously trying to save for a home themselves.
“When they eventually buy, they may have to downsize again in some areas to get onto the property ladder.”
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Leeds is the downsizing capital of the UK with 16 per cent planning to move into a smaller home this year, followed by Edinburgh (12 per cent), and Brighton (10 per cent).
Hargreaves Lansdown says these cities are home to a relatively young population, and younger people are far more likely to be planning a move in the next 12 months.
Its survey found that 30 per cent of those aged 18 to 34 are planning a move compared to 18 per cent of those aged 35 to 54 and only 7 per cent of those aged 55 and over.
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