Philip Hammond announced a new railcard for 26-30 year olds in the Budget today.

He claimed it would provide 4.5 million more young people a third off their rail fares.

Nick Marr, co-founder of TheHouseShop.com, claimed the new railcard could provide a welcome boost to rental markets.

He said: “Many young people working in London today are struggling to afford the high cost of living, as their wages fail to keep up with ever increasing rents. Our recent research found that one in four private renters currently spend more than half their monthly income on rent – leaving little disposable income at the end of each month.

“As you move further outside the capital, rental prices begin to decline significantly and tenants can end up paying almost half as much as they would for a central London postcode. However, when you take into account the cost of travel, this saving is almost wiped out – making the argument to move further afield for cheaper rents totally redundant.

“The launch of the new Millennial Railcard could offer discounts of up to a third on travel, which would have a significant impact on overall costs for young people in search of more affordable cost of living outside the capital. An unintended positive impact of the new railcard could be a boost to rental markets in outer areas like Maidstone, Reading and Winchester, as the savings balance shifts in their favour.

“The chancellor has had to balance the demands of landlords, who are typically Conservative voters, with the needs of young people priced out of the market. While he may not be able to do anything to lower rental prices for Millennials, policies like this can have a real impact on cost of living for thousands of young people across the country.”