Signals

Ireland – With property prices across Ireland rising at 11% a year, according to MyHome, social non-profit enterprise Common Knowledge has launched its Tigin Tiny Homes concept as an affordable solution to the growing housing crisis. The 20-square-metre micro-homes are built with natural materials including Margent Farm’s hemp cladding, cork insulation and natural rubber floor tiles.

Intended for people who are struggling to afford their own homes, they can either be bought ready-made or for self-assembly, with Common Knowledge offering to teach the skills necessary to complete construction. ‘The reality for a lot of people is that they can't afford a home that's actually ready to move into. They can only afford a home that needs a lot of work, and they can't afford to do that work and pay rent,’ says Harrison Gardner, co-founder of Common Knowledge. ‘The Tiny Home is filling this gap; people can use it for a year or two or three, while they work on their forever home.'

The project takes a proactive approach to the housing crisis, empowering young people with practical skills and solutions needed to get on the property ladder. Innovations for young home-buyers will continue to be a top priority for young consumers as they look to break out of being generation rent.

Spiralling rental costs are affecting an increasing proportion of young people in the UK, with more than 40% of those under 30 now spending over a third of their earnings on rent. The figure represents a five-year high, and is up about five percentage points on 2019, according to research from property consultancy Dataloft.

While London still has the highest rents in the UK, the study found that the affordability crisis is also hitting other towns and cities including Rotherham, Bolton, Salford, Walsall and Dudley, showing that the problem is not exclusive to the capital. A shortage of suitable housing is forcing prospective tenants to offer more than the asking price for fear of missing out on a property, with rapidly rising rental costs adding more pressure to household finances already squeezed by soaring food and energy prices.

As the cost of living crisis continues to bite and rental costs take an ever-larger chunk out of young people’s earnings, value offerings across other categories including food, beauty and fashion will become an increasingly important way to help people make ends meet.