Brits paid out £85.6bn in rent during 2023

Brits paid out £85.6bn in rent during 2023

0:03 AM, 11th December 2023, About 5 months ago 3

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Renters in Great Britain will pay a staggering £85.6bn in rent this year – that’s more than double the amount paid in 2010 and £8bn more than last year.

The report from Hamptons also shows that rents on new tenancies increased by 10.2% year-on-year in November, the highest annual growth rate since it began keeping records in 2014. The average rent for a new tenancy is now £1,054 per month, up from £956 a year ago.

London remains the most expensive rental market with tenants spending £32.1bn on rent this year, a new record.

This is more than the combined total of £29.4bn paid by renters in the North of England, Midlands, Wales and Scotland.

‘Record £85.6bn in rent in 2023’

The head of Research at Hamptons, Aneisha Beveridge, said: “Tenants across Great Britain paid a record £85.6bn in rent in 2023, equivalent to the total value of all homes sold in London last year.

“While over the last 12 months, the rent bill has increased because of record-breaking rental growth, longer-term it’s mostly risen as a result of more households renting.”

She added: “Higher interest rates in the medium term are likely to mean more millennials rent for longer.

“This is why the millennial rent bill has risen over the last few years, at a time when it might have been expected to fall.”

Rising rents are putting pressure on younger generations

The report highlights that rising rents are putting pressure on younger generations who are finding it harder to save for a deposit and buy their own homes.

Gen Z (born between 1995 and 2012) paid £30.5bn in rent this year, almost as much as millennials (born between 1980 and 1994), who paid £36.8bn.

Millennials also spent more on rent than ever before, as higher mortgage rates and stricter lending criteria kept them in the rental market for longer.

Ms Beveridge said: “With the rate at which millennials climb onto the housing ladder slowing, they’re starting their own families and renting larger, more expensive homes which is pushing up the amount of rent they pay.

“This also means that while Gen Z are set to start paying more rent than millennials in the next couple of years, that crossover is likely to come later and at a higher point.”

She adds: “And given that it gets progressively harder to get onto the housing ladder later in life, an era of higher rates will likely mean that more millennials will be renting for the rest of their lives.”


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Comments

Easy rider

9:39 AM, 11th December 2023, About 5 months ago

Mortgage payments rise by 61% in the year to December 2022.

Landlords are paying an extra £5.5billion in mortgage interest.

We need to make renting an attractive alternative to homeownership. Many landlords simply want to squeeze every last penny out of their tenants. The tax system could be used to encourage lower rents.

cashcow

14:57 PM, 11th December 2023, About 5 months ago

Unlike home ownership rental properties pay massive yearly tax payments to the government plus when we sell they get a massive CGT lump sum. I will be handing over 100s of thousands in CGT to the government, (as I am not incorporated grrrr) . All this money pays for schools (covid parties) and hospitals etc, this should be something we LLs feel proud of but nobody mentions it.
All we do is moan (me to) I guess its an British disposition.

JeggNegg

23:31 PM, 11th December 2023, About 4 months ago

Statistics! I am struggling to understand the point you are trying to make.
But my 1st reading of your comment suggested the total rents paid had increased by over 10% in year November 2022 to November 2023.This might be true but there is no reference to if the total number of renters had increased during that period.so I suggest the information might be biased.
Do you not think it would be much more interesting if you had provided the number of people in rented accommodation and the total they paid for each of the last 10 years.?
For the record I increased rents by 10% on 1st oct 2023, but that was based on the rent as at 1st October 2021 when I purchased the property.

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