5th November 2025
New Pocket Living research warns Treasury and City Hall that housing inaction is fuelling a social and economic crisis
- Shock findings of Pocket Living’s latest sentiment survey on housing within the capital reveals that two-thirds of Londoners aged 25-45 years old are covering housing costs with borrowing, including payday loans and credit cards
- Those ready to quit the capital due to high housing costs nearly doubles in two years from 22% to 42%
- Over two-thirds (70%) of renters surveyed stated that high housing costs were negatively impacting their mental wellbeing
- 62% of those who voted Labour in the General Election would consider shifting their vote if the party fails to deliver on housing
- Yet there is little evidence that disillusioned voters are turning to Reform: just one in five believe the party would perform better on housing.
A new sentiment survey by innovative affordable homes developer, Pocket Living, reveals that two in three Londoners aged 25–45 are now borrowing money to cover housing costs. Many are turning to credit cards (1 in 3) and some to payday loans (almost 1 in 5) in a powerful signal that generation rent has become generation debt.
The research, conducted among 1,000 Londoners in early September, shows the devastating social and economic ripple effects of a city that has simply stopped building enough homes. It also comes just weeks before the Chancellor’s Winter Budget, in which housing delivery is expected to feature heavily, and six months ahead of London’s local elections, where housing is set to dominate the political debate.
Despite record demand for homes, the capital’s chronic under-supply is driving working-age Londoners deeper into debt and out of the city altogether. The share of 25–45-year-olds ready to leave London due to housing costs has nearly doubled to 42% in two years. This is a shift that risks hollowing out the very workforce that keeps the capital’s economy and public services running.
Pocket’s research shows that key workers are on the brink more than anyone: more than half (52%) are considering changing sectors due to housing costs, while half (55%) are commuting over an hour for work and the majority say the cost-of-living crisis has delayed their plans to buy.
The social impact is no less severe. Seven in ten renters say housing costs are harming their mental wellbeing, while many are cutting back on essentials like food, transport and childcare. Nearly half have delayed starting a family as rents continue to rise.
From a political perspective, the research shows that 62% of 25–45-year-olds who voted Labour in the 2024 General Election would reconsider their support if the party fails to deliver its pledge to build 1.5 million new homes.
Overall, confidence in Labour’s record on housing remains fragile. With only 41% of renters of the view the party is doing a good job. Yet there is little evidence that disillusioned voters are turning to Reform: just one in five believe the party would perform better on housing.
Paul Rickard, Chief Executive Officer at Pocket Living, said:
“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. 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.
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.”