Commenting on the House of lords Committee on Intergenerational Fairness and Provision, published this morning, which states that the two youngest generations are devoting a greater proportion of their overall income to housing than previous generations and suggests measures the Government could consider to tackle housing cost inequality;
Becky O’Connor, personal finance specialist at Royal London, said:
“The imbalance of housing wealth and costs between the older and younger generations is an urgent social issue.
“Greater housing costs among the young, whether that’s rent or mortgages, have serious implications, such as living in cramped accommodation far away from work and putting off having children.
“Those renting face the worst of all worlds – they are paying more, for less.
“But care should be taken not to blame older people for this. The report makes it clear that older people are helping their children and grandchildren where they can. Many have their own housing cost issues to face. The causes are structural and therefore require policy reform – not simply more help from the Bank of Mum and Dad – to resolve intergenerational unfairness.”
About Royal London:
Royal London is the largest mutual life insurance, pensions and investment company in the UK, with assets under management of £138.9 billion, 8.6 million policies in force and 4,126 employees. Figures quoted are as at 31 December 2019.