More new homes needed to 'prevent a nation of renters'

Britain will become 'a nation of renters within a generation' unless more new homes are delivered, according to a new survey by the Halifax.

The survey suggests that almost two-thirds of people without their own home believe they have little chance of getting a foot on the housing ladder, due to a lack of mortgage finance and rising property prices, caused primarily by a lack of new homes coming onto the market in relation to demand.

Almost half of people aged between 20 and 45 admitted they thought the country was becoming more like Europe, in which renting was considered the norm.

Alison Blackwell, author of the report for Halifax, said: ''The phenomenon of Generation Rent could have major socio-economic implications.

''It would mean fewer homeowners being able to buy and therefore fund the construction of the new homes required in the UK to meet demand, resulting in a slowing-down in the housing market.

''It could open up a widening of the wealth gap that already exists between homeowners and non homeowners. And people in Generation Rent risk insufficient finances at retirement.''

Stephen Noakes, a mortgage expert at the Halifax, told BBC Breakfast today that there are some schemes that help first-time buyers.

The affordable homes sector offers the most obvious route onto the property ladder. There are a number of affordable homes up and down the country which are available to buy at a fraction of the whole ownership price.