Generation rent

Those who will never afford to buy a home - and we are more than you would expect

"Finish school, graduate from university, get a job, save some money and put it into a property". 

Easier said than done.

'I am a home owner, I own my house'. For most of us millenials these words may never come out of our mouths, and mum and dad may have not realised this yet. 

With rents soaring everywhere in the UK, the dream of owning your own piece of property while still in your 20-30s is a dream that may never come true for most of us. In fact, 65% of the under 35s in the UK rent their homes and are seriously struggling to save enough money for a deposit. The situation has got so bad that the older generation (of home owners) has labelled us GENERATION RENT. 

But what has exactly happened in the years in between our childhood and the 9 to 5 careers? Let's talk numbers.

Over the past 15 years something has deeply changed in the UK. During 2001 and 2011, in fact, the number of households in the private-rented sector in England and Wales raised from 1.9 million to 3.6 million; with a drop of homes owned by mortgage of 15%.  In other terms, the total number of people living in privately rented homes is now around 9 million and, for the first time in the UK history, this outnumbers those living in social housing.

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Could this get any worse? — Hint: Yes it can.

According to ONS, rent prices are skyrocketing like never before.

The average rent in the UK increases by 5.4% every year. This, at least, is if you don’t live in London, where rents go up by a shockingly 11.6% per year, making generation rent a hard reality to escape from.

Our thoughts about this:

It would be wrong to point the fingers to one cause responsible for all this. Like for most of generational transitions, the reasons for the changes are to be found in several factors. One of the top reasons we got where we are now is because private landlords simply don't have a limit (for their greediness). In fact, as of today a private landlord in the UK has no limits on how much rent they can charge to tenants - so as long as there are people willing to pay a higher and higher price for their rent, landlords will only continue to increase them. 

Organisations such as Generation Rent are fighting for rent caps and a lot could change at the next elections (June 2015). We believe that consumer education, transparency and the power of data could play a vital role in this fight, which is why ratedrents was conceived. 

If this is your first time on our blog you may want to read more of what we do here.

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