New research from the Institute of Fiscal Studies shows that despite an increase in average pay for young adults in the last two decades, 40% of the age group still cannot afford to buy the cheapest homes in their area. The IFS have also said that average weekly rent has increased from £140 to £200, making it harder for young people to save whilst renting. Research carried out by the BBC has also identified that average rent for a one-bedroom home in 65% of British postcode areas eat up more than 30% of a young adult's salary.

According to think tank Resolution Foundation, this means that up to a third of young people face renting their entire lives.

The IFS has also said that whilst the proportion of 25-34 year olds who own a home has dropped considerable from 55% two decades ago to 35%, the rate of homeownership for 65-74 year olds has risen gradually to around 80%.

What is the solution?

Think tank Onward has suggested government schemes to encourage landlords to sell their property to long term tenants through tax relief.

The Residential Landlords Association (RLA) said it welcomed the idea of lower taxation but said landlords would prefer to get tax relief on rent from long-term tenancies, or a refund of Stamp Duty.

However, 88,000 households would be eligible for the relief which would cost the Treasury around £1.32 billion a year.

Flat sharing to save money may seem like a logical solution, however 12% of postcodes in Britain remain "unaffordable" for two people in their twenties sharing a 2 bedroom home.

Moving Forward...

Research economist for the IFS and co-author of their recent study Polly Simpson has said that the answer is 'increasing supply'. According to the IFS the planning restrictions around building homes is pushing up house prices and making it more and more difficult for young adults to get on the property ladder.

According to the Ministry of Housing, Communities and Local Government 1.1 million properties have been built since 2010. A spokesperson for the ministry has said that "This government is committed to helping more people get on the housing ladder and last year saw the highest number of first time buyers for over a decade."