The amount of rent paid by tenants in the private sector has hit a record high, with landlords generating £51.6bn in rent in 2017, according to new estimates.
New figures released by Countrywide showed that amount is more than twice what was paid 10 years ago, in 2007, an increase that has largely been driven by rising rents and more people renting. A decade earlier, in 2007, the total rent was put at £22.6 billion.
Countrywide’s analysis suggests that for the past 11 years the millennial generation born between 1977 and 1995 have been paying the majority of total rent in Britain.
In 2017 millennials paid 59 per cent of the total rent, or just over £30 billion as oppose to 64 per cent in 2015. More and more millennials are beginning to buy their own home, which accounted for a shrinking proportion of the total rent paid, the report said.
Older renters still make up a significant proportion of tenants, with baby boomers born between 1946 and 1964 paying £5.5 billion or around 10 per cent of rent in 2017.
“The rental market grew in 2017. More people joined the rented sector and average rents increased, meaning 2017 saw the highest total rent bill so far,’ said Johnny Morris, research director at Countrywide.
“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 home owners,’ he pointed out.
He also pointed out that for the second month running rental growth in London has outstripped the rest of the country. “Stabilising rents in central London alongside rises everywhere else in the capital has pushed the rate of rental growth to the highest level for 22 months. While the rate of growth outside London remains higher than for most of last year, it has picked up to a lesser extent. Across northern England rent rises are running at half the rate of 2017,” he added.