Tenants in Great Britain paid total rent of £31bn in the first half of 2022 and are set to pay £63bn by the end of the year.
This will be a record high and represent the first big jump in five years, said the international estate agency Hamptons.
‘Almost all the rise stems from record-breaking rents which have been driven by a lack of homes on the market alongside investors passing on higher running costs to tenants’.
Rising prices mean the total amount of rent paid by tenants has more than doubled since 2008 while surpassing the 2017 peak, despite there being around 275,000 fewer private tenants than there were five years ago, said the firm.
‘The rising rental bill has been driven by Generation Z (born between 1997-2012) flying the nest. This generation has seen a tenfold rise in what they pay in rent over the last three years meaning they now hand over a fifth of all rent paid. Generation Z paid a record £5.8bn during the first half of 2022, a figure likely to hit £11.7bn over the whole year, meaning for the first time they will pay more rent than Baby Boomers (born between 1946-1964)’.
Rental growth rates slipped back slightly during the early summer months. Average rents across Great Britain rose 8.8 per cent over the last 12 months, representing a slowing of growth from the 11.5 per cent recorded in May. The average monthly rent now stands at £1,163, up from £1,069 at the same time last year, said Hamptons.
Across Great Britain, the number of rental homes on the market remains well down on pre-pandemic levels, with 54 per cent fewer homes on the market than in June 2019. However, stock levels are now slowly rising across Southern England (excluding London) compared to this time last year. And there are 10 per cent more homes to rent in the country than last June, albeit an increase from record lows.