The Liberal Democrats today announced plans for a new Help to Rent scheme, targeting support at young working adults who still live with their parents but want to move out and rent their own place.
Research shows around two million young working adults – sometimes dubbed the ‘boomerang generation’ or ‘clipped wing generation’ – still live with their parents despite being in paid work.
Rising rental costs mean they can’t afford the cash needed for a tenancy deposit or the one-to-two month’s rent expected in advance by some landlords unless they have financial help from their parents or friends.
The knock-on effect of having young working adults in the family home can also lead to parents having to upsize or delay the downsizing of family homes to accommodate older children, thereby reducing the availability of family homes.
Under the ‘Help to Rent’ scheme, young working people in Bracknell will be able to borrow up to £1,500 from the Government to go towards their tenancy deposit.
To be eligible, tenants would need to be between 18-30 years old, in paid employment and not be homeowners or seeking social housing tenancy. Loans could be paid over one or two years and once paid off, could be used for future rental properties.
Deputy Prime Minister and Leader of the Liberal Democrats Nick Clegg said:
“When you get your own job, you want to stand on your own two feet, have your own space, and not have to rely on the bank of mum and dad.”
Help to Rent adds to the suite of Liberal Democrat housing proposals aimed at young people, including a ‘Rent to Own’ scheme to help first-time buyers get on the property ladder by renting their way to ownership, and proposals to build 300,000 new homes a year.
Patrick Smith, Liberal Democrat Parliamentary Candidate for Bracknell, comments:
“As someone in the 18-30 age bracket myself I know just how hard it is for many young people to be able to establish themselves on their own two feet and to put the necessary means in place to be able to rent or buy their own home. For too many young people it feels like they are living responsibly, working hard and doing all the right things, but the soaring cost of rents and home ownership means the prospect of ever having a place to call their own seems ever more distant. The Help to Rent scheme, in collaboration with the Rent to Own scheme the Liberal Democrats announced earlier in the year, will help hundreds of Bracknell Forest’s young adults to take that critical first step and achieve genuine independence.”