Two in three young Londoners borrowing to cover housing costs, finds survey

Two in three Londoners aged between 25 and 45 are borrowing money to cover housing costs, according to a sentiment survey by Pocket Living.

The affordable homes developer’s study found that one in three were turning to credit cards and one in five to payday loans in order to make rent.

The 1,000-person study, conducted in early September, showed how the capital’s under-supply of housing was driving working-age Londoners into debt and out of the city.

The share of 25-45-year-olds prepared to leave London due to housing costs has nearly doubled to 42% in two years, with key workers particularly frustrated.

Seven-in-10 renters say housing costs are harming their mental wellbeing and nearly half have delayed starting a family.

Only 41% think Labour is doing a good job and 62% of those who voted for them last year say they would reconsider their support if the party fails to deliver its housing pledges. However, just one in five believe Reform would perform better on housing.

Pocket Living chief executive Paul Rickard said that “what was once generation rent is now, for too many, becoming generation debt”. 

“Behind the housing numbers are real people; key workers, young professionals, and families who make this city work but are struggling to find a home they can afford,” he added.

Rickard said he was pleased with the recent proposals by the government and the Greater London Authority, which included a reduction in affordable housing thresholds.