It’s no new news that the millennial generation, those born between 1982-2004 have far less chance of getting on the property ladder than their predecessors. It seems unfair that this generation according to a new study by Landbay*, featured in the Daily Mail, will pay have to pay out a staggering £1.1 million in rent , increasing to £2.6 million if they live in the capital, if they don’t get on the property ladder - as the average rent in the UK hits an all time high of £1,196.
They also found that Millenials who started renting a mid-sized home at 21 years of age would spend around £110,830 on average, on rent before they bought a home at around 32 years of age. Those people living in London would expect to pay another £162,380 on average to rent during the same period.
Despite the Government’s latest tactics to increase homeownership such as reducing the amount of stamp duty, help to buy schemes, trying to deter buy to lets for landlords, most millennials don’t ever expect to own a property of their own.
John Goodall, chief executive of Landbay, said: 'While younger people have always been overrepresented in the private rented sector, over the last decade there has been a marked increase in the proportion of younger households relying on the buy-to-let market.
'The Government is giving off strong signals that it is ready to tackle the supply shortages gripping the nation, while also improving standards, affordability and the institutional supply of rental properties in particular. This can only be good news if it becomes a reality, but with so many of the issues being systemic, only time will tell if these measures will have the desired effect.'
*Source:19/12/17 - Daily Mail http://www.dailymail.co.uk/property/article-5175811/Millennials-spend-1m-renting-lifetime.html#ixzz51gxoXMhM