Millennials face rent of up to £2.6m over their life

We hear a lot about the generational terms – Baby Boomers, Generations X and Millennials seem to be the simple categories to slot huge numbers of people into.

An unfair generalisation for many perhaps, but one thing is for sure, Millennials are the generation who are copping the biggest hit in rent as house prices continue to spiral out of the reach of many.

Recent research has revealed that Millennials renting in the UK will have spent more than £110,000 in rent by the time they are in a position to buy a property.

The data has shown that people renting an average sized home in the capital, if they started on their rental journey at aged 21 will have spent £110,830 by the time they are able to take their first step onto the property ladder at aged 32. This massive chunk of money equates to 34% of their £330,234 household income (post tax), according to Landbay’s National Rental Survey.

However, it seems that 41% of Millennials do not believe that they will ever make that first step onto the property ladder, with the research estimating that London-based tenants could spend up to £1.1m on rent if they live outside of London and an unbelievable £2.6m on rent in their lifetime if they live in London for their entire life.

While younger people have always been over represented in the private rented sector, over the last decade there has been a marked increase in the proportion of younger households relying on the buy-to-let market. The government is giving off strong signals that it is ready to tackle the supply shortages gripping the nation, while also improving standards, affordability and the institutional supply of rental properties in particular. This can only be good news if it becomes reality, but with so many of the issues being systemic, only time will tell if these measures will have the desired effect.

John Goodall, CEO and founder of Landbay

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