Will you be renting for life?
Chances are you’re going to be in rented accommodation if you were born between 1980 and 1996.
Those branded as ‘generation rent’ or ‘millennials’, are four times more likely to be renting at 30 than the previous ‘generation X’ – those born between 1965 and 1980, according to a new report from Resolution Foundation.
Around half of 18 to 36-year-olds are renting but the think tank suggests that a third will still be in the same situation when they hit retirement age.
So, what can you do to help improve your prospects?
Clear your debts
Whether it’s an overdraft with monthly fees or a credit card, work on clearing your most expensive debt first.
If you are on a 0% rate for an introductory period, paying only the minimum each month will make only a small dent and just increase the time it takes to pay it all off. Work to clear the balance and then use that cash to save.
Help to Buy schemes
Help to Buy ISAs, Equity Loans, Lifetime ISA or shared ownerships – there are multiple schemes in place to help you buy your first home.
For example, the Help to Buy ISA allows you to put a maximum of £200 in each month which will then be boosted by a government top up of 25%. The maximum amount you can put in is £12,000 which will then be topped up by £3,000 from the government.
Each scheme is different and it depends on what is best for you. If you won’t be buying within a year then money into a Lifetime ISA instead might be a better option.
Every little helps
If putting away £200 a month into an ISA isn’t possible then look at what you can comfortably afford to save. Take a look at your outgoings and see if there’s something you can cut back on.
Look at every outgoing and set a budget.
Content provided by moneyadviceservice.org.uk
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