According to recent research published by Nationwide, tenants paid £52 billion in private sector rent last year, the highest rent bill on record and more than twice the total amount paid in 2007.
The significant rise in the UK rental bill is driven both by an increase in the number of renters, as well as the rising cost of rents, with the average cost now sitting at £958 per month.
In 2017, millennials (those born between 1977 and 1995) paid 59 per cent of the total rent, at just over £30 billion, whereas baby boomers (those born between 1946 and 1964) paid £5.5 billion or around 10 per cent of rent in 2017.
Johnny Morris, research director at Countrywide, said: “The rental market grew in 2017. More people joined the rented sector and average rents increased, meaning 2017 saw the highest total rent bill so far.”
Whilst rents may be up, life has become harder for buy-to-let landlords, with the government’s increase in stamp duty, the abolishing of ‘wear and tear’ allowances for those renting property, and the tightening of rules around how landlords write off income costs against income tax, not to mention rising house prices!
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