Rents have doubled in the past 10 years as housing market focus shifts

 

Last year UK tenants stumped up over £50bn in rent, which is more than double the total amount paid 10 years ago, while homeowner mortgage payments have fallen.

London, the Midlands and the south-west of England have seen the biggest rent rises over the past decade, although across the country as a whole rents went up by £1.8bn in 2017 compared to the previous year – bringing the total to £51.6bn, according to Countrywide’s latest figures. Meanwhile, back in 2007, the UK’s total rent bill was just £22.6bn.

Millennials – born between 1977 and 1995 – have been paying the majority of the country’s rent bill for the past 11 years, coughing up more than £30bn annually since 2014. This amount has actually fallen by 2% in the past year as more members of this generation have become homeowners, although compared to previous generations millennials are still buying properties much later and paying rent for longer.

Jonny Morris, research director at Countrywide, said: “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 homeowners.”

A shifting perception

The capital saw rents rise by 3.3% in January, which was the highest monthly growth rate seen in almost two years – tenants in London can now expect to fork out an average £1,704 compared to £1,649 in December.

The amount being paid for mortgages has dropped over the past 10 years, from a height of £63.8bn in 2008 to £57.4bn in 2017, with low interest rates and cheap fixed-rate deals keeping costs low for homeowners with mortgages.

This shift between homeownership and renting in the UK indicates a reshaping of the property market, with buy-to-let landlords seeing an increase in demand for rental homes despite the recent government curbs and tax increases on the market, as well as tougher lending restrictions. According to the English Housing Survey, a record 46% of 25- to 34-year-olds rent their homes, with the number of homeowners in this age group contracting significantly from 57% in 2007 to 37% now.

Highgrove Mews

High Net Yield Freehold Houses

  • Commutable to London (27 mins to central Paddington station)
  • Rental demand extremely strong with large industry presence in Reading
  • Freehold with 4% net yield

£284,955 - £457,000

St Petersgate – Stockport Manchester

New Launch - Stockport Manchester, apartments from £160,000

  • Discounted launch prices from £160,000
  • Excellent transport links with 3 trains per hour to London Euston and only 9 mins journey to Manchester Piccadilly
  • Experienced development team

Assured Rent Housing Association Leases

Assured Rent Housing Association Leases

  • Assured rent & no rental voids
  • Tenant damage cover & newly refurbished inline with requirements of a corporate sitting tenant
  • Free property and lettings management

From £62,000

Emerging Birmingham Commuter Town With Properties From Just £104,000

The emerging Birmingham commuter town where properties are selling in an average of just 24 days

  • A collection of 62 two bedroom apartments and 28 one bedroom apartments.
  • DE14 is one of the fastest selling postcodes in the West Midlands.
  • 23 minute train journey into Birmingham New Street Station.

Properties from £104,000

Mill, Stockport

The Northwest's emerging property hotspot

  • Discounted off-plan 2-bed prices from £162,000
  • Completion date - Q4 2021
  • Rental yields - 6% plus

Discounted off-plan 2-bed prices from £162,000

South Central – Birmingham City Centre Apartments

Highly anticipated 28 storey launch in Birmingham City Centre with an impressive roof garden and communal facilities.

  • 154 units across 28 storeys
  • Residential multi-media community room, gym, roof garden and sky cinema
  • Excellent future connectivity via the metro system to other key transport hubs and locations around the city

from £205,800

ba-

Talk to us

Speak to our UK property experts today: 

+44 (0) 333 123 0320

Open from 9am-6pm GMT

+852 9865 4446

Open from 9am-6pm HKT

Stamp Duty Calculator

.

Unlock members only investment opportunities and full development details. Join now – it’s free, quick and easy.

Login

Not a member? Sign up for free

Buy-to-let-property

Rents have doubled in the past 10 years as housing market focus shifts

Example

By submitting your details via this online form you agree to be contacted via email/phone/SMS by Direct Marketplace Ltd t/a BuyAssociation in relation to property investment and property developments . We do not share your personal details with third parties.  To view our full Privacy Policy click here.