London housing crisis: one in six renters depressed about being trapped in rental accommodation

Seventy per cent of young renters say stress of trying to get on the housing ladder has harmed their mental health.

1/20

Jonathan Prynn, Business Editor @JonPrynn10 July 2019

The scale of the mental health fallout among young Londoners in relation to the housing crisis is revealed today in a major new survey.

Commissioned by affordable housing developer Pocket Living, the survey found one in six London renters in their twenties and thirties questioned was depressed about being trapped in rented accommodation, unable to make career changes, form a stable relationship, marry or start a family.

Seven out of 10 said the stress of trying to get on the housing ladder had harmed their mental health.

The soaring cost of homes in London has forced thousands of young workers to rent far longer than their parents had to, as they try to save a big enough deposit to get a mortgage.

London renters are putting off starting a family or even seeing friends due to the instability of renting

Alamy Stock Photo

Since 1990 the proportion of 25 to 34 year-olds owning their own home in London has plunged from 57 per cent to 28 per cent. In June 1994 the average cost of a home in London stood at just £73,013, compared with £471,504 today, according to latest Land Registry data.

The survey of more than 1,000 London renters aged 25 to 40 found that 80 per cent worry they will never manage to buy a home.

Many are making sacrifices to save for the large deposits required.

More than 38 per cent are cutting their budget for going out and seeing friends. The same proportion are considering moving back in with their parents, and 42 per cent are taking on extra work or a second job.

The lack of stability and certainty associated with renting means that 40 per cent said they would be reluctant to start their own business or make a big career move before owning a home.

Six in 10 said that their inability to buy a home might put them off starting a family in the future, while a fifth have delayed getting married and nearly half admitted their housing situation has affected their personal relationship.

Lucian Smithers, sales and marketing director of Pocket Living, said: “We know that the process of buying your first home can be complicated and stressful. We want to give first-time buyers as much support as possible to help navigate these challenges.”