Young Scots turn to payday loans in order to afford housing
According to a report by the University of St Andrews, young people in Scotland are struggling to navigate the housing market, with some taking out payday loans in order to avoid rent arrears.
This is part of findings looking into the housing policy currently in place across Scotland, by the Centre for Housing Research, which identified the problems facing those under 35 years old, who live in the private rented sector (PRS), and for long periods of time. This situation has been referred to as ‘Generation Rent’.
Their report highlighted that housing problems can be influenced by a range of factors such as parental support and youth employment. Those on low incomes, and reliant on benefits, are heavily at risk, in the PRS, of having to use food banks or payday loan companies, in order to cover their rent costs.
“Young people face considerable challenges navigating the housing market, with those on low and insecure incomes vulnerable and at potential risk of homelessness,” said Dr Kim McKee, co-author of the report.
“The growth of the PRS not only includes frustrated potential homeowners, but also young people who would previously have rented from a social landlord.”