How Does Rentier Capitalism Influence Housing Affordability and Accessibility, and What Are the Consequences for Younger Generations’ Housing Opportunities Post-2020?

Abstract

This dissertation investigates how housing trends, availability, and affordability, influenced by rentier capitalism, impact younger generations in the UK post-2020. Rentier capitalism, which is where wealth is mainly generated through ownership of assets rather than productive economic activities, fundamentally shapes economic structures and influences housing markets. This economic system, favouring asset accumulation over production, leads to a concentration of wealth and aggravates housing affordability issues by inflating prices and limiting supply. We established a theoretical framework by analysing key works on rentier capitalism and its broader economic implications, as well as exploring how rentier capitalism affects housing trends and decision-making processes. Furthermore, we analysed how this form of capitalism promotes speculative investment, restricts housing supply, and impacts social mobility, particularly young adults’ access to affordable housing. Through qualitative interviews, we gathered empirical data from young adults across various UK regions, which helped to provide personal insights and experiences into the challenges faced in the ever-changing housing market. These interviews highlighted the substantial differences between theoretical predictions and real-life experiences, stressing the lack of current policies to mitigate the adverse effects of rentier capitalism on housing affordability. Our key findings reveal the existence of a critical gap between rising housing costs and the quality or suitability of available accommodations. Young adults express a sense of instability and predict similar or worsening conditions if seeking for new housing, reflecting a prevalent sense of market deficiency. Urgent policy interventions are crucial to address the critical affordability crisis. Revisiting rent control measures and reassessing housing supply strategies are immediate steps that need to be taken. In addition, stricter regulations on speculative investments are advised to help stabilise the housing market. Improving tenant protections and integrating affordable housing with employment opportunities could significantly improve young adults’ living conditions and quality of life. In terms of future research, we believe that it should broaden the demographic size of the study as to include a more diverse range of young adults and extend the analysis over a longer period to keep track of the evolution of rentier capitalism’s impacts, as economic and social policies adapt to global changes. In essence, this dissertation has extensively explored the implications of rentier capitalism on housing trends, mainly focusing on the impact of these housing trends on younger generations in the UK after 2020.