More focus on rentals

And urban research body Centre for Cities is warning young people will struggle to find decent places to live unless politicians encourage investors to provide more affordable properties to let.

Director of Centre for Cities Dermot Finch, said: “The Government is focusing too much on home ownership, and not enough on homes for rent.

“Demand for rented housing is increasing all the time – but supply isn’t keeping up.

“Unless this changes, the young and those who are moving will have difficulties finding somewhere decent to live.”

Centre for Cities wants to advise developers and investors on suitable areas for building, to make sure suitable homes are placed in suitable locations.

A registered charity, the think-tank is also looking at reducing the focus on providing large percentages of social housing in every development.

It estimates the UK will have more than three million renters by 2021. This would be up more than a third, 1.2million, on 2001.

And estate agents are already reporting significant jumps in rentals in the Canary Wharf area from last year’s figures.

Head of residential agency Alan Selby and Partners Dawn Sandoval said: “Our lettings department is 50 per cent up on the same month last year.

“At the end of the day, people have got to move somewhere, and if they’re not buying they’re going to be renting.

“If the Government were to step in to encourage investors, it would help out a lot.”