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Sancho Panza

Middle Aged Priced Out Of Housing Ladder Turn To Lodger Lifestyle

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Telegraph 31/7/14

'They are the age when those in their parents’ generation would have hoped or even expected to have a family home of their own.

But increasing numbers of people in their 40s are choosing to abandon the property market altogether to become lodgers because of soaring property prices and rents.

New research by the insurer Liverpool Victoria (LV=) shows that the lodger has made an unexpected comeback in Britain’s cities with the number of home owners taking in a paying guest to fill a spare bedroom almost doubling in five years.But, unlike in the past when students and young adults who had just moved away from home embraced the lodger lifestyle, the average age of the new breed of lodger is over 30 and increasing numbers of them are as old as 50.

It comes on top of evidence of growing numbers of families opting to get around the property shortage by moving in together with three generations under one roof.

The new research also found that demand for accommodation is so high that the average spare room is being filled within little more than a week of being advertised.

Today’s landlords are more likely to be looking for a little extra help paying the mortgage, with a typical spare room bringing in an average of just over £3,000 a year – or £4,145 in London, according to the study.

The report included a survey of more than 5,000 home owners which found that 2.7 per cent were renting out a spare room to a lodger, up from just 1.4 per cent in a similar survey in 2009.

The new research also showed that lodgers are getting older, with the average age rising from 29 five years ago to 31. One in five of the lodgers profiled were aged between 36 and 50.

Selwyn Fernandes, managing director of LV= home insurance, said: "It has been clear for some time that property prices have forced growing numbers of people to rent instead of buying but, as the average age of a lodger has risen to 31, not only are more people renting now but they are renting for longer.”

But he added: “While renting out a room to lodgers can be a great source of income, home owners might be unwittingly invalidating their home insurance, leaving property and possessions at risk.'

Edited by Sancho Panza

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I know someone who maybe a lodger for ever. She is 41 and does have much chance of buying, getting a council property or paying rent for a whole flat.

I knew someone who was a lodger from [sometime in the distant past] until he died in his 90s. He was working into his 90s too.

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Well the cynic in me says as the last paragraph a lodger may invalidate the home insurance policy so it's just a strategy to get business.

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So the age demographic that should have a good income and lifestyle now have to become lodgers.

I suspect this is because house prices are un-sustainably high.

:D:D:D

Edited by TheCountOfNowhere

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No wonder this country of ours is still in a depression. World war it is then. I can't wait - I've been preparing mentally, financially, equipment, knowledge and skills wise since mid 2007. Bring it. I will charge a far higher price to protect the toffs than my equivalents did post 1945.

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There's a lady who I overhear regularly in the local library bemoaning the fact that she is 59 and living in a bedsit with shared toilet facilities with younger people . She seems fairly middle class and such accommodation does seem unusual at her time of life. Another of her gripes is retirement is now 7 and not 1 year away and she must endure the hell of job seekers allowance. The female precariat of Joan Bakewell's generation indeed were the luckliest precariat in the history of mankind getting the works at 60 often involving free rent, full topped up state pension and DLA.. Actually the men too, who also got default retirement at 60.

I guess there will not be much sympathy for her from younger people where this type of accommodation is quite normal.

But certainly culture and Government policy deems boomers more equal and that is wrong. Why we should be more sympathetic to a 59 year old than a 21 year old in this type of accommodation is a good question.

Edited by crashmonitor

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I like the way they are describing being a lodger as a choice. Believe me almost no-one choses to do it voluntarily. Even a HMO without the owner staying there is preferable.

I have been a lodger, have a lodger now and have living in a shared house. I would say being a lodger for me was better than living in a shared house.

It was cheaper and easier and when comparing two sub optimal conditions I think price is important.

The phone was a problem when living as a lodger as some landlords wouldn't let you use it etc, but of course with mobiles it is no longer a problem.

Of course affordable housing would be better.

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Reminds me of when krusty was offering her sage like wisdom on QT. that younger people don't want to buy anymore as other options ie renting and presumably sharing/lodging, offered more flexibility and that they should live in "pods".

Naturally the audience applauded her and the panel nodded in agreement.

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