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The expression Generation Rent has been increasingly used
by journalists since 2011, as more and more twenty and thirtysomethings are
privately renting instead of stepping on the property ladder.
There is also
a considerable number of forty-something adults who belong to the same Generation, unfortunately.
Data released in October by the
Office for National Statistics revealed that private
rental prices paid by tenants in Great Britain rose by 2.7 per cent in the
twelve months to September 2015.
As the years pass by, those who cannot afford to buy a
property now will not get any closer to having their own place. In fact, it is
likely they will be renting for many years ahead and will also be sharing with more
and more people as rents increase.
The worst-hit city is London, where rents went up 4.1 per cent
over the year to last September.
On average, someone earning the London Living Wage of £ 9.40 per
hour has to spend more than half their salary on rent and there is hardly one
borough in the capital where somebody with a similar income can live
affordably.
A single room in a not too glamorous area of London can cost £
700 a month, not to mention about prices in the renowned areas of the capital.
Are politicians doing anything to help the Generation Rent?
When it comes to housing issues, the Government normally
focuses on council houses and special right-to-buy schemes.
No much is on the agenda for those single tenants or lodgers
in full time jobs who bear the brunt of skyrocketing rents. As a consequence of
them being caught in a rent trap, most tenants of this Generation struggle to save enough money for a mortgage.
A report released earlier this year by economists at
accountancy firm PwC suggests this trend will continue. By 2025, a quarter of
all households will privately rent, they predict, with the biggest increase
among those aged 20-39, where “a clear
majority” will be private tenants within 10 years.
And it will not come as a
surprise, considering that the average UK home would be worth around £360,000
by 2020.
