This graphic shows the share of households privately renting in each age group in the UK. Unsurprisingly, younger generations dominate the rental market. Almost 6 in 10 people aged 18 to 24 rent, compared to just 1 in 20 of those aged 65 and over.
At first glance, it looks like a modern crisis. But if we zoom out and look back to the 1970s, the levels of renting were strikingly similar. In fact, go back to the 1950s and 60s, and renting was even more common. History, it seems, is repeating itself.
Many renters want to buy, and saving a deposit is difficult. Yet it’s also worth noting that, despite higher prices, mortgage payments for first time buyers today (as a percentage of income) are lower than in the late 1980s and the mid/late 2000s. Also, 95% mortgages (meaning only a 5% deposit is required) have been available for over a decade.
The rental market is growing not just because people can’t buy, but also because some choose the flexibility it offers.
The challenge is complex, the reasons varied. But as an agent, we need to understand both the data and the human stories behind it.
So, here’s the question: is renting always a last resort, or has it become a lifestyle choice for today’s younger generation?
Regards
Paul Forbes
