Unaffordable Rent for Under-30s Increasing

Rent is unaffordable

Renters under the age of 30 are increasingly having to pay unaffordable rents, in what is being dubbed the ‘cost-of-renting crisis’ – during the current cost-of-living crisis.

Statistics from property market consultancy Dataloft showed that four in 10 people who rent while under the age of 30 have to pay rent amounting to 30% of their take-home pay.

Many experts are saying that it is unaffordable for people to pay this much on rent. Statistics also show that under-30s have to spend more on rent than any other age group.

The current situation is ‘horrendous’

Although London has the highest rent prices, there have been vast increases in the costs of renting in smaller towns such as Bolton and Rotherham.

This comes at a time when many are having their finances squeezed to the maximum and there has been a fall in real pay.

Nick Gallent, professor of housing and planning at University College London, told the BBC that if young people are locked into paying high rents now then it could cause problems in the future.

Gallent added that the current situation of rising inflation and energy bills is “horrendous”.

Not enough homes on the market

Elton Papri, of the estate agency Shipways, says the reason for higher rents is that there aren’t enough homes on the market.

Papri also blames the reason for higher rents on potential tenants being forced to offer more than the asking price.

He added that: “People wanting to rent shouldn't be offering £100 more if they can’t afford it but are then put in the difficult position of missing out on that property.”

Propertymark, the trading body for estate agents, has also said that there aren’t enough properties on the market.

The body explained that landlords have decided to sell properties because of rising taxes and maintenance costs.

Underlying structural features to blame

Danisha Kazi, a senior economist at research and campaign group Positive Money, says there are also other reasons why rent is increasing rapidly.

Kazi said that underlying structural features in the market are also to blame and that a supply shortage of properties is not the only reason.

She added that it is the long-term trend of rents rising since the 1980s and housing policy reforms, which make evictions easier and give landlords more power over tenants, that are also responsible for the situation.

More power to renters

Housing campaigners Generation Rent have called on the government to freeze rent prices and pause evictions – calling the current situation for young people “dire”.

The Department for Levelling up, Housing and Communities said it recognised people were facing cost-of-living pressures and that paying rent was likely a tenant's biggest monthly expense.

It said it hopes its plans to ban landlords from evicting tenants in England without reason and giving renters more power to challenge unjustified rent increases and poor conditions will make it “fairer” for renters.

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