|Focus||Economy||Sales||Lettings||Stat of the Month
A growing rental sector
The total rent bill in 2017 rose to the highest yet, due to more people joining the rented sector and average rents increasing. Last year tenants in Great Britain paid a record £51.6 billion in rent, an increase of £1.8 billion on the previous year and more than twice what they paid in 2007. Despite average rents falling in 2008, the total amount of rent paid by tenants has risen in every year for the last decade.
For the last 11 years millennials (born 1977-1995) have been paying the majority of the total rent in Great Britain. This equated to £30.2 billion in 2017, or 59% of all rent, this is down from a peak of 64% in 2015 when they paid £31 billion. Today millennials account for a similar proportion of renters as they did in 2011. As millennials age, more are becoming home owners, 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 in previous generations as fewer become homeowners.
While the two youngest generations make up the largest proportion of the rental market, older renters remain a significant proportion of tenants. Despite a high proportion of baby boomers (born 1946-1964) owning their own home, many still rent. Last year this age group paid £5.5 billion, 10% of all rent, the same as Generation Z (born after 1995). This reflects that on average individual baby boomers pay more rent each month than any other Generation, because they typically rent larger homes in more expensive places.