Report reveals record £56.2 billion paid in rent by under-45s in 2024

Why younger tenants are paying more than ever

Report reveals record £56.2 billion paid in rent by under-45s in 2024

The annual rent paid by individuals under 45 in Great Britain surged to £56.2 billion in 2024, marking a £3.5 billion increase from the previous year, according to Hamptons’ Monthly Lettings Index. The report noted this demographic now accounts for two-thirds (66%) of all rent paid across the country, up from 64% in 2023, returning to pre-pandemic levels.

The report highlights that higher mortgage rates have hindered younger buyers from entering the property market, driving a 149,000 increase in the number of under-45 renters—the fastest annual growth in a decade. This shift, which amounts to about 40% of those who utilised the government’s Help to Buy scheme since 2013, underscores the significant impact of rising borrowing costs.

The overall rent paid by tenants in Great Britain reached a record £85.4 billion in 2024, a 71% rise over the past decade. This increase has been attributed to both rising rental rates and a marginal uptick in the number of renters.

Regional rental trends

While the average rent for newly let properties rose modestly by 2.0% in 2024, the smallest annual increase since October 2020, regional disparities were notable. Scotland led the way with the highest rental growth at 5.5%, followed by the Midlands (5.2%) and the North of England (4.8%). Conversely, Greater London saw a slight decline in rental prices, with overall rents falling by 0.2%, though Inner London rents rose by 3.8%.

The average monthly rent across Great Britain now stands at £1,367, up 31.2% since late 2020, representing an additional £3,912 annually for the average tenant. However, the supply of rental homes remains constrained. Despite a 10% year-on-year increase in available properties in 2024, stock levels remain 13% below 2019 figures, suggesting continued upward pressure on rents in 2025.

Changing demographics

For much of the past decade, older renters (45+) drove growth in the private rental sector, as stricter lending criteria and lower interest rates encouraged younger households to transition into homeownership. Between 2013 and 2023, the number of over-45 renters increased by 24%, while the under-45 rental population declined slightly.

However, rising mortgage rates have reversed this trend. In 2024, the number of over-45 renters fell by 79,000, collectively paying £716 million less in rent than the previous year. In contrast, the financial burden on younger renters has risen by 59% over the past decade, primarily driven by higher rents rather than an increase in tenant numbers.

“Higher mortgage rates have clipped the wings of many young aspiring homeowners in the last couple of years, meaning Millennials increasingly outnumber older generations in the rental market,” said Aneisha Beveridge (pictured), head of research at Hamptons. “For most of the last decade, the government’s flagship Help to Buy scheme played an important role in transferring tenants from the rental market into homeownership. However, the record rise in the number of younger renters over the last year highlights the impact of higher mortgage rates and the need for a similar scheme if the government wants to achieve its ambition to help more people become homeowners.”

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