Not all tenants appear to be struggling to pay rent

Most landlords will have encountered a tenant struggling to pay rent or refusing to do so to spend cash on Christmas presents or holidays, for instance.

But two news stories in the last few days highlight a frustrating issue as young tenants complain about unaffordable rents while splashing out big sums on luxury experiences and social events.

While tenant campaign groups argue that housing costs are out of control, evidence suggests many young people are prioritising discretionary purchases over paying rent.

The BBC News website tells the tale of young people spending small fortunes to attend hen and stag events overseas.

Can’t pay rent

It reports Hayley, 29, recently spent more than £1,000 attending a hen celebration in Marbella, Spain.

She admits that the initial cost of the flights and hotel weren’t too bad but the other costs including nights out, clothes and cocktails added up.

She said: “You feel like you have to do it.”

Social media platforms are filled with complaints about celebration costs, with one TikTok user posting: “Don’t mind me, just choosing whether to attend or pay my rent for the next three months *crying face emoji*.”

Lucy, also 29, acknowledges that “the rising price of friendship feels like it’s spiralling out of control” as peer pressure drives expensive group activities.

She told the BBC: “It’s that time of life where everyone is getting engaged, married or having kids. And the costs of celebrating all of that adds up.”

Saving for a deposit

Meanwhile, housing statistics paint a challenging picture for first-time buyers with average deposits now at £61,000, according to Halifax data.

Starter homes cost £311,000 and the average house price has reached £286,594, representing nearly six times higher costs than three decades ago.

Average salaries have increased from £15,034 to £37,430 since 1995, critics point out that discretionary spending on entertainment, travel and social events often takes precedence over deposit saving.

The issue has been the focus of an i newspaper feature which sees Charles, 27, admitting: “Money doesn’t grow on trees. Lots of my friends work in the public sector, and it’s a struggle to keep up.”

The data reveals that after tax and national insurance, average earners retain £30,469 annually.

With typical monthly rents at £1,343, approximately £16,116 goes toward accommodation costs, leaving £1,150 per month for all other expenses including bills, food, transport and potential savings.

Housing costs rocket

Estate agent Savills reports that more than half of first-time buyers received family financial support totalling £9.6bn in gifts and loans last year, highlighting the growing importance of generational wealth.

Ben Twomey from Generation Rent told the i: “Gen-Z have spent their entire adult lives facing housing costs that are rising much quicker than their earnings.”

However, homeownership rates among under-34s have been steadily increasing over the past decade, reaching 39%.

There will be lots of landlords looking at the income figures and expenses and remember they were in a similar situation but managed to save.

And now Labour is committing to boosting housebuilding and protecting renters through periodic tenancies and ‘no-fault’ eviction bans, leaving landlords exposed to non-payers.

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