A new survey shows younger renters in Britain facing record-high rents, with costs soaring as landlords pass on mortgage expenses
London: Younger tenants in Britain are feeling the pinch as rents have skyrocketed. A recent survey revealed that they’ve collectively seen a £3.5 billion increase in rent costs, hitting a record high.
It’s wild to think that those under 45 are now responsible for 66% of all rent in the country, which totals a staggering £56.2 billion this year. That’s a lot of cash!
The rise in mortgage costs, thanks to the Bank of England hiking interest rates, has really impacted renters. Rents peaked in December 2023 with a 10.2% annual increase, but thankfully, it’s dropped to about 2% now.
With so many young folks unable to buy homes, the number of under-45s renting has jumped by nearly 150,000 in just a year, reaching 3.4 million. That’s the fastest growth we’ve seen in a decade!
This surge in renters coincided with the end of the Help to Buy scheme in March 2023, which had helped many first-time buyers over the last ten years.
Aneisha Beveridge from Hamptons pointed out that higher mortgage rates have made it tough for young people to buy homes, leading to more millennials renting instead of owning.
She mentioned that renters now need to save longer and earn more just to afford a home. It’s a tough situation, and it looks like many young people will be renting for quite a while.
Interestingly, older tenants saw their rent burden decrease by £700 million last year, as fewer over-45s are renting now. It’s a mixed bag for sure.
Despite all the challenges, house prices have still climbed by 25% over the past five years, hitting an average of £300,000 across the UK. That’s a hefty price tag!
In November, house prices were rising at an average rate of 3.3% across the UK, with Northern Ireland seeing even higher increases.
Rightmove recently reported that the average asking price for new homes rose by 1.7% in January, marking the biggest jump since before the pandemic.
Over the last decade, rent in the UK has shot up by 71%, surpassing £85 billion this year. It’s a staggering figure!
Experts warn that rents are likely to keep climbing as landlords may pass on their costs to tenants, especially with Labour’s upcoming Renters’ Rights Bill aiming to improve conditions for renters.
This bill, set to be approved soon, will introduce several reforms, including ending no-fault evictions and limiting deposits. While many are excited about these changes, landlords are concerned about how it will affect their costs.
