Last year tenants across the UK paid £51.6bn in rent, which is a £1.8bn increase on the year before, and more than twice what they paid in 2007 according to new figures.
The hike in rent prices in the last 10 years has been primarily fueled by a rise in the number of households which rent. The total amount of tenants has increased annually for the last decade.
The amount of rent paid by millennials (born 1977-1995) has dropped by 2% and according to research by Countrywide this is largely due to Generation Z – those born after 1995 entering the rental market.
Generation Z now collectively spend £5.5bn in rent, doubling the amount over the last year. The same amount was paid by baby boomers (1946-1964) who also remain important to the rental market.
Proportion of total rent paid by each generation
(born after 1995)
Overall the rate of rental growth we have witnessed in January remains unchanged from the end of 2017. However on an annual basis, the average cost of a new let rose 2.4% from last year, unchanged from December 2017.
Excluding London, average rents across Great Britain rose by 1.9% compared to annual growth of 2% in December.
Rental growth has accelerated in the capital while Scotland, the South East and the South West have witnessed a slow down. The North West was the only region to see rents fall.
|East of England||£925||£925||0.0%|
|Great Britain (Ex London)||£766||£752||1.9%|
Johnny Morris, Research Director at Countrywide, said: “The rental market grew in 2017. More people joined the rented sector and average rents increased; meaning 2017 saw the highest total rent bill so far. As millennials age, more are becoming homeowners, so the total amount they’re paying in rent has started to drop. But the Generation Rent title still applies. Any fall will be much smaller and slower than seen by previous generations as less become homeowners.”
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