UK renters paid out £51.6 billion in 2017, marking the highest rental bill on record.
The UK’s rental bill was up £1.8 billion during 2017 according to research from Countrywide. The growth was allegedly driven by an increase in the number of renters with the average cost of a new let was up 2.4 per cent year on year, reaching £958.
The amount of rent paid out by the millennial generation, defined as being born between 1977 and 1995, fell by 2 per cent as this group graduated to property ownership. However, this contingent still has the largest overall rent bill, forking out over £30 billion per year since 2014. Millennials have been paying the majority of the of the nation’s rent bill for the last 11 years.
Millennials will pay less in rent over time as they age and begin to get onto the property ladder, according to Countrywide. However, Countrywide warned that as a group, millennials would transition to home ownership more slowly than the generations before them, largely due to the difficulty in the housing market at the present time.
Research director at Countrywide, Jonny Morris, said: ‘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.’
In contrast, those born after 1995, known as Generation Z, doubled its rent bill year-on-year from £2.7 billion to £5.5 billion. This marks the sharpest increase of any age group.
Excluding London, average rents across Britain were up 1.9 per cent. Rental growth in London exceeded the rest of the country with the average new let up 3.3 per cent year on year, up from £1,649 to £1,704. The North East was the only region to see falling rents.