"What was once Generation Rent is now, for too many, becoming Generation Debt"
- Paul Rickard - Pocket Living
New research from Pocket Living has revealed that two-thirds of Londoners aged 25–45 are borrowing money to pay for housing, using credit cards or payday loans to manage rent or mortgage payments. The findings highlight increasing financial pressure on working-age residents and raise concerns about the capital’s long-term economic stability.
The survey, conducted among 1,000 Londoners in early September, outlines what the developer describes as a deepening social and economic challenge for the city. Published just weeks before the Chancellor’s Winter Budget and ahead of next year’s London elections, the research suggests housing affordability will remain a key political issue.
Pocket Living’s analysis shows that two in three respondents within this age group now rely on borrowing to meet housing costs. Around one in three are turning to credit cards, while almost one in five are using payday loans. The results indicate that what was once ‘generation rent’ is fast becoming ‘generation debt’.
The share of 25–45-year-olds planning to leave London due to high housing costs has nearly doubled in two years, increasing from 22% to 42%. The shift raises concerns over the potential loss of skilled workers who sustain the city’s economy and public services.
Key workers appear particularly affected. More than half (52%) said they are considering leaving their sector because of unaffordable housing, while 55% are commuting over an hour to work. Many also reported delaying plans to buy a home due to the cost-of-living crisis.
The personal impact of these pressures is significant. Seven in ten renters said housing costs are negatively affecting their mental wellbeing, and many are cutting back on essentials such as food, transport and childcare. Nearly half have postponed starting a family as rents continue to rise.
The research also highlights changing political attitudes. Among 25–45-year-olds who voted Labour in the 2024 General Election, 62% said they would reconsider their support if the party fails to deliver its pledge to build 1.5 million new homes. However, only one in five respondents believes Reform would perform better on housing, suggesting limited confidence in alternative parties.
“Our latest research shows that the pressures facing not only young Londoners, but those into middle age, have deepened significantly over the past two years,” said Paul Rickard, chief executive officer at Pocket Living. “What was once generation rent is now, for too many, becoming generation debt. Behind the housing numbers are real people; key workers, young professionals, and families who make this city work but are struggling to find a home they can afford. The social and economic risks of allowing this situation to continue are clear, not just for London but for the country as a whole.”
He continued, “We are pleased to see both the Government and the GLA recognising the unique challenges facing the capital through their recent proposals to encourage delivery, including a reduction in affordable housing thresholds. This is a positive step towards getting London building again and unlocking stalled sites that can deliver more homes for the people who need them most. The priority now must be to maintain that momentum and turn intent into delivery. With strong collaboration between the public and private sectors, we can give Londoners the stability they deserve and ensure the capital remains a place where people can live, work, and thrive.”
