High rents are preventing younger workers from ‘getting on their bike’ to access better jobs and reducing employment mobility, leading independent think tank the Resolution Foundation has claimed.
In a report published yesterday by Torsten Bell (left), once an aide to former Labour leader Ed Milliband, it is claimed that the number of people moving home to get a new job each year has fallen from 30,000 in 1997 to 18,000 today.
It blames this dramatic reduction in mobility on high rents in areas where the best-paid jobs are to be found for 25 to 34 year olds,
“Rents have risen fastest in areas that have the highest earnings levels – not the fastest earnings growth – rising by almost 90 per cent the among highest paying local authority areas, compared to 70 per cent among the lowest paying,” says Bell.
“This has reduced the living standards boost that people might receive from moving to higher paying parts of the country.”
In response to the report, the Residential Landlords’ Association has blamed the UK’s high rents on the private rented sector policies being pursued by the government, which is says are “choking off the supply of homes for private rent as demand is increasing,” says its Policy Director David Smith (right).
“We warned Ministers that this would happen, but they have not listened.
“Instead of attacking the private rented sector we need pro-growth policies that recognise the need for more homes of a good standard and at an affordable rent.
“Making renting less attractive for landlords will not make a substantial difference to the availability of property. We must focus on building more homes to address this.”