Millennials Rejoice! You’re paying less rent than before…
Research from Hamptons International suggests that millennials are paying a lower proportion of the total rental burden in Britain than a year ago – because more of them can afford to buy.
The Countrywide brand, which issues a monthly rental market report, says that in 2019 across Great Britain tenants spent a record £62.4 billion on rent. This is £3.1 billion more than in 2018.
Since 2007 millennials have paid the majority of rent in Great Britain and this was the same last year – but the proportion is coming down.
Last year millennials paid 60 percent of all rent in Great Britain, totaling £37.3 billion. However, this is down from a peak of 64 percent in 2015 as more millennials have become homeowners in recent years.
It is the youngest generation born after 1995 – the so-called Generation Z – who have picked up the baton.
Last year Generation Z tenants paid 15 percent of all rent in Great Britain, equating to £9.2 billion.
This was a £3.1 billion year-on-year increase and marked a significant rise compared with 2014 when Generation Z paid just £0.3 billion or 1.0 percent of all rent. And Hamptons says that this year it is likely that Generation Z will pay more rent than Generation X (born 1965-1976) for the first time.
While the youngest two generations combined pay nearly three-quarters of all rent in Great Britain, older renters still play a significant role in the rental sector.
Last year baby boomers – those born between 1946 and 1964 – accounted for 8.0 percent of the total rent bill and paid £5.3 billion.
This was down from 10 percent in 2018 when they paid £5.9 billion in rent.
Meanwhile, the oldest generation (those born pre-1945), many of whom are homeowners, paid just £0.5 billion in rent last year, £0.2 billion less than in 2018.