The rising cost of house prices is having a negative impact on more than just those that are being shut off from moving from buy to let to becoming a homeowner. It is keeping young people from being able to take jobs in areas where the price of owning a home is out of reach of their budget and savings. In areas where house prices are high and still rising, such as in London, buy to let housing is usually also expensive due to strong demand for alternative housing besides ownership.

Rental prices have been rising along with house prices and without an affordable place to live near an attractive job, talented young people have to turn down employment offers. Many are said to be moving completely outside of the UK to find affordable housing and look for competitive employment.

A report from Sutton Trust confirmed that young graduates, especially those that are disadvantaged, are being shut out of starting their careers in London due to unaffordable housing costs. If they can’t turn to their families for financial help to find a place to live then they must look elsewhere for job opportunities.

The study revealed that more graduates are living with their parents than on their own. It also showed that in London, more of the young people living in the area are from educationally privileged areas.

Suggestions were offered to include plans to form short term student type housing opportunities within London for young professionals. This would allow young people to get established in their careers and have a place to live while doing so until they can afford to move out on their own.

To show the demand upon housing in the capital, the report revealed that while the population in London had grown by 12% since 2001, the housing stock had only increased by 9%.

Sir Peter Lampl, chairman of the Sutton Trust and of the Education Endowment Foundation, said, “So many of our leading jobs are based in London, yet the current housing situation is making it increasingly difficult for graduates from less advantaged homes to move here.

“Our brightest young people deserve the same chances to reach the top of their professions or to be able to turn their talents into businesses whatever their background.”