A government white paper has called for the island to introduce rent controls.

The white paper was commissioned by the Cabinet Office to look at intergenerational fairness and how the island can support its young workers while looking after the elderly.

The report was published by Minister for Policy and Reform Chris Thomas and explores issues including income, home ownership, pensions and renting in the island.

It noted that earning progress has ’stalled’ for young adults.

’Millennial’ families are less likely to own their own home, fewer workers are members of pension schemes and while household wealth has grown since the turn of the century, this is largely for older people.

One of the outcomes of this has been the decline in home ownership in people under the age of 50 in the island.

In 1991, 44% of those under 30 owned their own home, while the figure was 70% for 30- to 49-year-olds.

By 2011, this had slipped to 33% and 62% respectively.

In order to rebalance this, the white paper suggests the government should: ’Develop a rent protection mechanism and tenancy arbitration process, together with other necessary landlord and tenancy arrangements which should help those who are in living in rented accommodation, which is becoming increasingly common for younger generations.’

It is also recommended that the island introduces an ’all-island housing strategy’ which would include a five-year action plan.

However, this is likely to prove problematic as government attempts to enforce an all-island policy even for public authority housing has been met with strong opposition from local authorities including Douglas and Onchan.

In response to the recommendations, Ramsey MHK Alex Allinson has tweeted to say that the island has to ’seriously consider rent controls and increasing the range of options in the public sector’.

Dr Allinson told the Manx Independent: ’It is quite clear that the younger generation on the island are faced with stagnant wages and uncertain career progression, insecurity around workplace pensions and real anxieties about being able to afford their own home.

’With high rental costs it is impossible for some to save towards a deposit on their first home. I completely support the recommendations that there should be an all island housing strategy to look at how we can support young people securing an affordable tenancy and offer them the chance to then buy their own home if they wish.

’There needs to be more flexibility regarding access to social housing and an evaluation of the current "mid-rent" pilot scheme to see if this is effective.

’At the same time tenants and landlords in the private rental sector should be supported to improve the quality of the homes on offer at affordable rents for those on medium to low incomes but lessen the dependence on housing benefit to bridge the gap between the housing people need and that which they can afford.’

The white paper said: ’Whilst ultimately the housing stock will have to pass onto younger generations, the current increase in house prices and stagnant or falling wages may mean that this increasingly happens through inheritance rather than purchasing.’

The report later said: ’High private sector rents limit the ability of younger generations to save for a deposit for a house which is amplified by the fall in wages that they are also experiencing.’

It was added that changes in afford ability requirements set out by the Bank of England may have made it harder for young people to afford to buy their own house.

In his foreword, Mr Thomas said: ’Local evidence suggests that generational progress has indeed stalled here as it has done in the UK.’

He added that the island faces ’significant challenges in providing the career, housing and pension opportunities that previous generations came to expect’.