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The Independent
15-02-2025
- General
- The Independent
Why having a spare room is the next battle in the wars between generations
More in common. That's often the phrase that gets trotted out amid the various culture wars, whipped up into a frenzy to divide and distract us from what's really important. From drag queen storytime to whether the National Trust uses marg or butter in its scones, the number of non-issues ripe for inexplicable weaponisation never fails to amaze. The topics that pit generation against generation can be even sillier – does the length of your socks really signify anything? Does whether or not you send Christmas cards to everyone you've ever met, still have a landline, or choose to upload your musings to Facebook or TikTok really define who you are as a person? But there are some genuine lines in the sand that are hard to ignore, the latest one being space. It's in short supply – and some demographics are more equal than others when it comes to staking their claim. According to new data, b aby boomer homeowners are enjoying ever more breathing space with bedrooms to spare, while Gen Z are being squeezed into increasingly small and expensive rental properties. The latest English Housing Survey reveals that 55.7 per cent of owner-occupied homes in England, equating to just under 10 million, are classified as 'under-occupied', with at least two unused bedrooms. This number has risen by more than 10 per cent over the last 20 years. But the story of the rental market is very different – just 13 per cent of properties are under-occupied, down 3 per cent from the previous year. The age group most likely to reap the rewards of all this room is pensioners: more than a third (36 per cent) of Britain's homes are owned by this cohort. In the most recent census, 84.1 per cent of households where an over-65-year-old was the main resident were under-occupied. Conversely, the number of young people with no housing wealth at all – 44 per cent of 25 to 34-year-olds – is at a record high, according to Intergenerational Foundation analysis of ONS data shared with The Daily Telegraph. The average age of a first-time buyer in England has now risen to 34. And if you're one of those under 34-year-olds currently grappling with the, at times, completely unhinged rental market in this country? You are likely to be living in increasingly cramped conditions – put aside the number of bedrooms and the total amount of physical floor space is reducing. Nearly one in five properties for rent have less than 50 square metres of floor space, the minimum required by law for two occupants. The percentage of dwellings smaller than this has grown from 15.3 per cent a decade ago to 18.6 per cent today. Beneath all these numbers, percentages and statistics are the real people affected by the big squeeze. It's hard to argue against the sense of injustice that young people feel when their circumstances are contrasted with a generation who seem to have won the lottery of life: more rooms than they know what to do with; household wealth 33 times that of 16-24-year-olds; and who, according to previous analysis, are helping fuel the current housing shortage by refusing to downsize when their children have flown the nest. Households aged 65 to 74 are, in fact, getting richer at the fastest rate of any generation. But back to space. It can be something of an abstract concept – the kind of thing that you barely notice when you have enough of it, but whose absence is profoundly felt and impossible to ignore. The Covid pandemic shone a light on this discrepancy like nothing else, splitting the population into the haves and the have-nots – a divide less to do with disposable income and more to do with the tolerability of your living situation. Baby boomers safely ensconced in four-bedroom detached houses in the countryside with rambling gardens and acres of green space on the doorstep wondered what the fuss was all about when we entered lockdowns, chastising everyone else to just 'keep calm and carry on'. Those of us trapped in one-bedroom flats without so much as a balcony, at the whims of landlords who could up the rent at a moment's notice, had a markedly different experience. Beneath all these numbers, percentages and statistics are the real people affected by the big squeeze I still remember, at the tail-end of restrictions, searching for a room in London after breaking up with my long-term partner. Competition among renters was particularly fierce at a time when many people's circumstances had changed, with anything half-decent or reasonably priced snapped up within days. The low point came when I was shown a 'six-bedroom' flat, sold on the flexibility of its rolling monthly contract (meaning I could leave – and therefore get kicked out – at a moment's notice. How exciting!). The other catch quickly became apparent: there was no longer a living room, the private landlords having chosen instead to convert this into the sixth bedroom to maximise profits. The only 'communal' space left was the kitchen, so small there wasn't room for a table. The 'bedroom' would therefore have to serve as lounge, dining room and office when working from home, all rolled into one minuscule and deeply depressing package. It was difficult, at the time, not to feel resentment towards the older people I knew who would attend Zoom events from their spacious home office or jump on a call from their sun-dappled gardens, answering emails while getting a tan. 'The continued widening of the gulf of housing wealth between generations is deeply concerning,' Toby Whelton, from the Intergenerational Foundation, said of the think tank's latest analysis. 'If these trends of low homeownership continue for younger generations, it will mean that when younger generations reach state pension age, the majority will not enjoy the same security of owning their own home and will be forced into renting into very old age.' It's hard to see how the tide might turn. In November last year, the average UK house price was £290,000 – 10 times the average salary for a 22 to 29-year-old. Thirty-five years ago, baby boomers could pick up a house for around five times the average salary. Their money went twice as far. Nothing about that is fair. No, it's not baby boomers' fault that they benefited from growing up in a completely different economic landscape. No, pitting old against young does nothing to bring us together as a nation following a turbulent few decades of austerity, Brexit, coronavirus and all the rest. But Britain's young people have good reason to be mad as hell. We may indeed have 'more in common', but wouldn't it be nice to live in a world where one of the things we all had in common was access to affordable housing?
Yahoo
13-02-2025
- Business
- Yahoo
The ugly truth behind baby boomers and Britain's housing crisis
Boomer homeowners have at least two rooms to spare while younger people are forced to live in cramped rentals, analysis has revealed. Nearly 10 million homes in England had at least two unused bedrooms last year and were therefore considered under-occupied, according to the latest English Housing Survey. Pensioners made up the largest share of these homeowners, with around 36pc of Britain's 16 million properties owned by retirees. The issue is amplifying generational rifts. While pensioners enjoy ever more breathing space, the young are being squeezed into expensive rentals. It comes as a separate analysis of Office for National Statistics (ONS) research by the Intergenerational Foundation found that the number of young people with no housing wealth is at record highs. It has become harder for renters to find bigger properties, with the proportion of those with extra bedrooms on the private market falling from 16pc in 2022-2023 to 13pc last year. The proportion of rental homes with less than 50 square meters of floor space has increased to 18.6pc from 15.3pc a decade ago. This is equivalent to the minimum gross internal floor and storage area by law for a new-build single-bedroom flat for two people – with the absolute minimum for one being 37 square metres. However, owner-occupied homes are ballooning, with the share of those stretching over 110 square metres increasing from 34.7 to 38pc during this time. Not only are renters having to live in smaller homes, but the route to becoming a homeowner is getting harder as prices continue to rise. In 2008-2010, the proportion of 25- to 34-year-olds who have no housing wealth was 35pc. The latest data, which covers 2020-2022, found that 44pc now have no housing wealth. The average age of a first-time buyer hit nearly 34 last year, according to major lender Barclays, two years higher than at the turn of the century. The average price of a home in the UK was £289,707 in November 2024, according to the Land Registry – 10 times the average wage for those aged between 22 and 29. Baby boomers were eyeing up property worth an average of £58,000 at a similar age back in 1990, roughly five times their £12,500 pay packets at the time, meaning their money went about twice as far. Meanwhile, over-65s are the only group which has not seen an increase in the number of those without property wealth. The proportion of pensioners sitting on property wealth of more than £500,000 has jumped from 5pc in 2008-2010 to 18pc. 'The continued widening of the gulf of housing wealth between generations is deeply concerning,' Toby Whelton, from the Intergenerational Foundation, said. 'If these trends of low homeownership continue for younger generations, it will mean that when younger generations reach state pension age, the majority will not enjoy the same security of owning their own home and will be forced into renting into very old age.' Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Yahoo
13-02-2025
- Business
- Yahoo
Teachers' pensions costing taxpayers £1bn a month
Retired teachers receive more than double the money that is spent on school students every year, official figures show. Spending per pupil was £7,460 in England and £7,327 in Wales during 2023 to 2024, but retirees in the Teachers' Pension Scheme were handed an average of £16,600 for the same period. The cost of payments to retirees has since soared past £1bn a month, while taxpayers will fund another £9bn of payments into current teachers' pensions this year. It comes as the Government's decision to charge VAT on private school fees is expected to raise £1.5bn in 2025 to 2026. Members of the Teachers' Pension Scheme are mostly teaching staff from mainstream schools, but some work in participating independent schools, further education and higher education. When they retire, they are guaranteed an income for life that rises annually with inflation. According to its annual report, the scheme paid £11.3bn to 681,000 retired teachers across England and Wales in 2023 to 2024. A further £559m was paid as part of 83,000 pensions to dependants. The report also suggests that current teachers will receive £8.8bn in pension contributions during 2024 to 2025. This would be an increase of almost £2bn compared to the previous year after schools were forced to increase contributions from 23.6pc to 28.6pc to meet the scheme's spiralling costs. Liz Emerson, of the charity Intergenerational Foundation, said students were losing out and that politicians should be honest about the cost of public sector pensions. She said: 'Economists have long warned that over-generous pension promises made in the past would come home to roost. The result is that today's students are losing out on education spending and resources for their generation as budgets are diverted to pay these annual pensions. 'Furthermore, a double whammy is at work because many of these pensions will be for private school teachers whose pension contributions were topped up not by their schools but by the general taxpayer during their working lives. 'Intergenerational unfairness in the pension system will not stop until politicians tell the truth about the hidden iceberg of liabilities looming below the surface in most public sector pension schemes.' Government figures also show that since July, the amount paid for retired teachers' pensions has exceeded £1bn a month. Like others in the public sector, they are funded on a pay-as-you-go basis, meaning contributions are not invested to pay future pensions. Instead, payments to retirees are made from general taxation and the contributions coming in. However, the rising cost of the Teachers' Pension Scheme is already forcing some schools to withdraw, which could lead to less money coming in – and a larger shortfall for taxpayers to plug. United Learning, the UK's largest academy chain, is already offering teachers higher salaries to opt out of the scheme, while around 400 private schools – which do not legally have to offer membership – have already closed it to new staff or left altogether. Teachers at some private schools have gone on strike after their employer threatened to fire and rehire them unless they withdrew in a desperate attempt to cut costs. A Department for Education spokesman said: 'Teachers are at the heart of the Government's mission to break down barriers to opportunity – there are 680,890 retired members of the Teacher Pension Scheme who have dedicated their careers to teaching children, ensuring that they can achieve and thrive. 'The pension in payment to a retired teacher is based on their entire career – they deserve to receive the benefits that they have accrued and a guaranteed income in retirement is one of the rewards for teaching. 'The Teacher Pension Scheme remains one of the most generous pension schemes available and is a key part of the recruitment and retention of the best and brightest teachers.' The National Education Union was approached for comment. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
