It's not just buying a first home that young people are having a problem with – first-time tenants are also finding it increasingly difficult to find a home as rents and deposits reach record highs.
More than seven people search for every room that comes on to the rental market. This huge demand is pushing rents up, and as they climb so too does the size of the average deposit.
Much of the demand for rented property is coming from would-be first-time buyers struggling to meet lenders' deposit requirements.
Rents rose for the seventh month in a row in August, according to LSL Property Services, with the average rent in England and Wales reaching £713 a month, and £1,025 in London; the typical one-month deposit on a rental property in London is now more than £1,000.
Given that rents and deposits are expected to carry on climbing, and competition for homes will get even more cut-throat, what can first-time tenants do to improve their chances of getting on to the rental ladder?
Two of the best ways to do are to make sure your credit rating is up to scratch, and having suitable references. With landlords able to cherry-pick tenants, this can make life difficult for those with a poor credit rating who may find they are refused tenancy, or asked for a higher deposit.
It is also worth bearing in mind that some letting agencies and many private landlords will rely solely on references from a bank, employer or previous landlord rather than a credit check.
As a prospective tenant, it is advisable to review your credit report to check it is accurate and up-to-date. You may be able to identify ways to improve your credit record, such as registering on the electoral roll and closing unused lines of credit.
Landlords will be able to see any court judgements or insolvency records, so pay off any judgement as quickly as you can, and get your report updated.
For those who are unable to cover the costs of their own property, or gather a necessary deposit, a flat-share can offer a cheaper and more flexible alternative. If you're looking to flat-share, find out whether you are on the lease, and whether the tenants are individually or collectively responsible.
Set up standing orders, as this means you can't forget to pay and saves anyone having to ask for money.
You may be able to rent more cheaply if you can compromise by living a bit further out of town, taking a smaller room in a house-share, or sharing a room with your partner. To stand out from the competition, get your finances sorted upfront and be ready to commit when you see the property you want.
Don't forget that presentation is important, and that being enthusiastic, flexible and polite with your landlord or future flatmates can also help improve the chances of them picking you.
Social lettings
The challenging economic environment is leading to more tenants relying on assistance from the government, with social lettings now accounting for 13% of all new lets – the biggest proportion since 1999 according to the Royal Institution of Chartered Surveyors.
If you are a housing benefits tenant, deposit demands should not be any higher than for anyone else as the landlord has a guarantor in the local authority.
At present, many tenants choose to have their housing benefit paid directly to their landlords to cover the rent. Despite this, not all landlords are comfortable about social housing tenants because the rents are paid in arrears, rather than in advance.
Many are also concerned about government plans to pay the new universal credit directly to tenants under the Welfare Reform Bill. The National Housing Federation believes this could undermine consumer choice and threaten landlord income streams, and is calling for tenants to have a choice to go on having their benefit paid directly to their landlord.