Figures suggest Generation Y will spend £53,000 on rent before they reach 30.
Recent research has found that millennials will spend £53,000 on average in rent before they reach 30, a whopping £44,000 more than the previous generation who would have spent an average of £9,000 on rent in today’s money.
The Guardian report that a combination of declining home ownership for young people and increasing rent rates have led to a scenario that has seen younger generations forced into paying significantly more to rent housing. The lack of affordable housing in densely populated areas has seen far more young people opting to rent instead of saving for their first home. This is certainly the case for London, with a high percentage of this generation desperate to work and live there, statistics from 2014 show that London had a net inflow of 50,000 young people aged 22-30.
The Family Resources Survey released by the Government found that 39% of UK landlords are from the baby boomer generation, with a 50% share of all UK rental income. The housing market climate has swung in the favour of landlords from this generation, making it a profitable venture with average rent prices steadily on the rise.
Falling home ownership is mainly attributed the declining housebuilding and lack of affordable housing for young people, shortening supply cannot meet the excessive demand, and this allows landlords the opportunity to increase or at least match the rising average rent prices.
The trend of younger generations seeking to live in London and other densely populated areas only looks to continue, increasing the pressure on supply and price of housing. Our affordable housing in Essex and Suffolk provide the perfect opportunities for a range of different housing requirements, our honest approach means you're always getting the best advice to help you make the right choices.
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