Generation Rent

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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.