Wednesday, May 20, 2009
Landlord, where are your tenants now?
BBC Radio 1 Newsbeat: 'Boomerang' generation back home
The number of young men and women living with their parents has shot up over the last year, according to the latest figures seen by Newsbeat. The housing charity Shelter reckons the recession is to blame as people in their 20s feel less secure about their job prospects and banks want a bigger deposit from first-time buyers. An extra 111,000 16 to 29-year-olds either moved back in with their parents or decided not to move out in the 12 months to December 2008. The rise is four times the average increase over the last five years, according to the figures from the Office for National Statistics. A 2007 survey of young people across the European Union found that money was the main factor when deciding whether to leave home for the first time. [Meanwhile, a survey of bears found that woods...]
3 Comments
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1. inbreda said...
I can understand the numbers for people moving out being influenced by the recession, but not for those moving back home.
If you ask me they are sensibly waiting for prices to hit a reasonable level before getting on with their lives, and saving like mad in the meantime.
Can't help the poor BTLers though can it.
Altogether now... "Aaaaaahhhhh"
2. drewster said...
inbreda,
There are several different groups moving back in with mum and dad:
- People losing their jobs
- People losing their jobs, then finding a new job which pays less
- People getting less income in their commission-based jobs
- People working fewer hours because their employer doesn't have enough work for them to do
Then there are the age-related groups:
- 16 year olds who can't find work after leaving school in July
- 18 year olds who can't find work after leaving school in July
- 21+ year olds who can't find work after leaving university in June
All these people would normally be moving out or staying out of the family home. Now they're either coming home or not leaving in the first place. Now consider that some 600,000 kids do their GCSEs every year. That's a big number.
(btw, Gordo's plan to keep kids in school til the age of 18 is nothing more than a trick to mask youth unemployment levels).
3. General Belgrano said...
I agree, its over for lettings, infact its worse than that because the culture will change and kids will stay at home longer. Infact I lived in Italy for last few years and there kids would stay at home till married. Because wages are low and house prices high.
I think it is a depression. I see 15% YoY for next 4 years then stagnation for a decade as real wages or disposable income rise. Inflation will take over and pensioners(boomers) will be wiped out, as somebody posted before, the cheques will arrive but will be worthless. I had a nice chat with my father in law the other day and he told me it was the same in former USSR.
fun times ahead