A report by the non-partisan think-tank, Resolution Foundation, has said that a third of young people (those born between 1981 and 2000) will never own their own home when they reach retirement.
Millennials Finding It Hard To Buy
The report says that millennials are finding it much harder to get on the property ladder than previous generations with only 47% owning a home by the age of 45.
As it stands, 77% of retired people own their own home but the remaining 23% rent a property, with many of them receiving housing benefits. In 2017, 1.3 million pensioners received state help with their housing costs which cost the taxpayer £6.3 billion.
Future Housing Costs
The future, according to the report, would see a significant increase in the amount of housing benefits being paid out to the elderly.
Source: Resolution Foundation
In the most optimistic scenario where it is assumed 73% of millennials own a home, it would cost the taxpayer £12.2 billion in today’s spending terms.
The report makes clear that these numbers could change up or down depending on how much people rent socially, something an increasing number of millennials now do.