Housing costs weigh heavily on young people

Despite working hard, studying harder and doing all the “right” things, many young people can still feel stuck.

Perhaps they’re still living at home and saving for a deposit that seems out of reach, or maybe they’ve moved out and worrying about how to make ends meet.

So it’s perhaps no surprise that new figures show many consider the cost of living - in particular the cost of buying or renting a house - to be the biggest barrier to progress.

According to a Policy Exchange study, 59% of 18 to 30-year-olds think housing costs are the biggest obstacle to getting ahead, ahead of issues such as:

• the current job market
• repaying student loans
• lack of training opportunities

Of the young people polled:

• 46% live in rented accommodation
• 26% said they own their own home
• 25% live in the family home

Private renters spend a third of their wages on housing

According to government data, private renters spent more than a third (34%) of their wages on rent in 2023-24.

That’s up from 32% in 2019-20, and well above the share spent by social renters (26%) and people with a mortgage (19%).

Private renters were also found to be the most likely to struggle to afford their housing costs, with nearly one in three (32%) saying they find it hard.

By contrast, just 28% of social renters and 14% of people who own a property said the same.

Are you struggling with housing costs?

If you’re finding it hard to keep up with your rent, mortgage or save up for a deposit, then options are available.

Our budget calculator can help you identify where possible savings can be made, so you can prioritise your spending and free up cash for vital expenses.

It’s also worth using our benefits calculator to find out if you’re getting all the state support you might be eligible for.

We’ve also put together some useful money saving tips for people living in rented accommodation.