How much rent do tenants pay?

Written by: Aneisha Beveridge, Head of Research, Hamptons International

The number of over 50s living in rented accommodation has increased – and this year they are paying out billions.

In May the average cost of a new let in Great Britain rose to £977pcm equating to a 2.6% year-on-year increase. Rents in the South drove the rise, with the South-West recording the strongest rental growth of 4.0%. Meanwhile rents in London increased 3.1% annually to reach £1,716 pcm.

Outside of London, however, the average cost of a new let increased 1.6% on average to reach £782 pcm. Rents rose in the North, Midlands and Scotland, while the East and Wales were the only regions to record small rental falls of -0.5% and -0.1% respectively.

The number of over 50s living in rented accommodation has reached a record high. This year 15% of all rented households were over 50, with pensioners making up a third of this group. With older generations now making up a bigger part of the rental sector, over 50s will pay £9.2 billion on rent this year, up from just £5.1 billion in 2012.

This means that £1 in every £7 paid by tenants in Great Britain now comes from a tenant aged over 50. With falling homeownership rates, tenants are getting older, and an ever more diverse group of people are calling the rented sector home.

For more information

Get in touch with your local branch if you have any questions on the current lettings market (regulation, compliance, mortgages, etc).

Contact your local branch