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Research has shown that one of the defining characteristics of English life, that young people leave small towns with limited prospects for fetching wealth in the big cities, is in dramatic decline.
According to the Resolution Foundation think tank, more and more young people are stuck where they grew up or went to university because they can not pay rents in places where they can earn more. d & # 39; money. It shows that the number of people aged 25 to 34 who have found a new job and moved to a home in the last year has decreased by 40% in the last two decades.
While previous generations had been able to settle in large cities such as London and Manchester or regional hubs such as Leeds and Bristol to develop their careers, the current millennial generation is experiencing a weakening of mobility due to rising rents, which can wipe out the entire financial situation. gains of a movement.
Even short-distance trips are barely valid, according to the data. A middle-income Scarborough worker who earned an average rent would have made a better 29% if she moved to Leeds in 1997, paid average rent and earned average money. In 2018, rising rents and stagnant wages meant that the benefit after rent was only 4%.
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Moving from Sunderland to York in 1997 would have represented a 6% increase in income after rent, but would now drop by 24%. Private rents have risen fastest in the highest paid areas of the country – by nearly 90 percent in the highest paid areas, compared to just over 70 percent in the lowest paid areas.
Because changing jobs is the best way to increase wages and geographic mobility is the best way to find these jobs, the think tank said the trend could "hinder young people's career and earnings prospects." ".
"Young people today are often stereotyped as free people when it comes to working," said Lindsay Judge, Senior Policy Analyst at Resolution. "But in reality, they move much less often than before. One of the main reasons why people move for work is the lure of a higher salary. But more and more, these wage gains are being swallowed up by high housing costs. "
Hannah Wilde, 30, of Sunderland, said she canceled her move to London to pursue a career in the publishing industry when she reviewed rents in the capital.
"Some rooms in London cost the same as my full monthly salary for my first job in digital marketing in Sunderland," she said. "At first I was frustrated because I had the impression of missing fantastic opportunities in big cities because of rising rents. However, I've had great opportunities with Northeastern businesses and I've just got a job as a Social Media Manager for a fast-growing skin care company in Durham. "
Milo, 25, a video producer in Totnes in Devon, said he had decided to settle in London, but he acknowledged the financial risks.
"The big cities do not offer you this safety net," he said. "If you run out of rent, that's a lot. A difficult life requires you to remain vigilant and regularly re-evaluate your place there to make the most of it. "
The phenomenon does not affect only young people. For example, someone who works in a school in Cornwall would be much poorer if they were given a similar job in Bristol.
A move from East Devon to Bristol in 1997 would have resulted in a 19% increase in its revenues after the rent, but the rising cost of ownership in this country meant that in 2018, this increase would not was worth an increase of 1%.
Someone who moves from Corby, in Northamptonshire, to Barnet, in North London, could lose 22% of his income after rent, while he would have benefited from an increase of 6% in 1997.
The findings were made when the Affordable Housing Commission released a study that found that 43% of all tenants now faced affordability issues and that 5.5 million renters were currently unable to afford it. To buy their own house.
The commission, created by the Smith Institute think tank and chaired by his counterpart Richard Best, said that when rents or purchase costs exceed one-third of household income for working people, this can lead to difficulties. and that these problems become critical when the cost of housing 40% or more of household income.
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