Home-ownership will elude one in three UK millennials, with a large number likely to remain in rented accommodation for their entire lives, according to a new study by the Resolution Foundation.
The foundation said around 14 million 20-35-year-olds would be affected, with half still renting in their 40s. The study suggested a third would be renting when they reached pensionable age.
The report also forecast that as a result, the nation's housing benefit bill will more than double - from £6.3bn now to £16bn in 2060.
These figures highlight "how everyone ultimately pays for failing to tackle Britain’s housing crisis,” said the study.
The foundation suggested a three-year cap on rents, limited to annual increases not in excess of the consumer price index (presently 2.5%).
"Indeterminate" tenancies should replace 6- and 12-month contracts in order to give families more long-term stability, according to the report. Scotland introduced indeterminate tenancies in December 2017. Such arrangements have long been the norm in Germany, the Netherlands, Sweden and Switzerland.
The report voiced concern that more and more families are being raised in rented accommodation, and that current rental agreements do not provide the long term stability required to maintain "schooling, friendship groups and support networks" once young people have a family.
Would rental caps shrink the private rented sector?
However, the idea of implementing rental caps is far from popular among landlords.
David Cox, the chief executive of the Association of Residential Letting Agents, said: “The last time rent controls existed in this country, the private rented sector shrunk from 90% [of all housing] to 7%.
“At a time of demand for private rented homes massively outstripping supply, rent controls will cause the sector to shrink. In turn, this means professional landlords will only take the very best tenants and the vulnerable and low-income people that rent controls are designed to help will be forced into the hands of rogue and criminal operators, who may exploit them.”
Another idea tabled by the Resolution Foundation paper is that of taxing non-UK individuals who buy property here. Overseas property buyers in Australia and Canada already a pay 15% tax.
The report also recommended giving local authorities more powers to build affordable homes. These might include compulsory purchase powers and better access to finance for home building.