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Will you be renting until you're at retirement age

Will you be renting until you’re a pensioner?

If you were born between 1980 and 1996 chances are you’re going to be in rented accommodation.

A new report from Resolution Foundation has revealed that those branded as ‘generation rent’, or the more widely-used ‘millennials’, are four times more likely to be renting at 30 than the previous ‘generation X’ - those born between 1965 and 1980.

Around half of 18 to 36-year-olds are renting but the think tank suggests that a third will still be in the same situation when they hit retirement age.

So, what can you do to help improve your prospects?

Clear your debts

Whether it’s an overdraft with monthly fees or a credit card, work on clearing your most expensive debt first.

If you are on a 0% rate for an introductory period, paying only the minimum each month will make only a small dent and just increase the time it takes to pay it all off. Work to clear the balance and then use that cash to save.

Help to Buy schemes

Help to Buy ISAs, Equity Loans, Lifetime ISA or shared ownerships – there are multiple schemes in place to help you buy your first home.

For example, the Help to Buy ISA allows you to put a maximum of £200 in each month which will then be boosted by a government top up of 25%. The maximum amount you can put in is £12,000 which will then be topped up by £3,000 from the government.

Each scheme is different and it depends on what is best for you. If you won’t be buying within a year then money into a Lifetime ISA instead might be a better option.

Every little helps

If putting away £200 a month into an ISA isn’t possible then look at what you can comfortably afford to save. Take a look at your outgoings and see if there’s something you can cut back on.

  • Preparing lunches each day instead of buying
  • Bulk buy at the supermarket or look at for the yellow reduced stickers
  • Save on travel by using ticket splitting sites
  • If socialising is your biggest expense then find ways to save some £’s

Budgeting and switching

Look at every outgoing and set a budget. If you’re spending a lot on utilities then consider switching suppliers to get a better deal.

Shop around for deals on not only utilities, but money off codes for supermarkets or voucher sites for meals and days out.

The money that you would’ve otherwise spent without these deals put towards your house fund.

For more tips on how to cut costs, lower your debts and to save on everyday spending head over to the new My Money content over on our main site – it’s not all about stopping buying avocados in order to buy a house.

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