19^th Feb 2018

A nationwide estate and letting agents group states that there was good news for 2017 as the UK's rental bill rose by £1.8bn, because of the increasing numbers of renters in the market pushing up prices. The rental increase on new lets was up by 2.4% from 2016 with the average monthly rent of £958.

Millenials (born between 1977 and 1995) have accounted for the majority of UK' rental income since 2005, however this has fallen by 2% in the last year as many became property owners. According to the group's research, they are still responsible for the highest amount of rent in the sector as they have paid more than £30billion every year since 2014.

Over the ensuing years Millennials will pay less in rent because of being able to graduate to home ownership, albeit at slower rate than their earlier generations.

Johnny Morris, research director of the group, 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."

However those born after 1995, has doubled its rent contribution year on year from £2.7bn to £5.5bn, the sharpest increase of any age group.

Throughout Britain the average rent increased by 1.9% excluding the capital as its average rental increase on new lets was far higher at 3.3% year on year, with the average monthly rent rising £1,649 to £1,704.

The North East was the only region that experienced a fall in rents.

News Archive »