Countrywide’s latest analysis of the lettings market says millennials are slowly but surely becoming homeowners, giving ground in the rentals sector to the (even younger) Generation Z.
Countrywide says over the past 11 years the millennials (born between 1977 and 1995) have been paying the majority of total rent in Britain.
This reached a peak in 2015 when they paid £31 billion in rent - a whopping 64 per cent of the total.
Last year they paid £30.2 billion or 59 per cent of the enlarging total rent in Britain.
“Today millennials account for a similar proportion of rent as they did in 2011. And as more millennials buy their home, they will account for a shrinking proportion of total rent paid” notes Countrywide’s research director Johnny Morris.
However, Countrywide has suggested the so-called Generation Z renter (born after 1995) is on the march - it now spends £5.5 billion on rent in 2017, about 10 per cent of all rent and double the sum in the previous year.
Baby Boomers (born between 1946 and 1965) may dominate the owner occupier sector but nonetheless some of them rent - they also paid about £5.5 billion in 2017. However, because of their age and relative wealth, Baby Boomers are likely to rent larger and more expensive properties according to Countywide.
“The Generation Rent title still applies” says Morris.
“Any fall [in number of millennials leaving the rental sector] will be smaller and slower than seen by previous generations as less become homeowners” he suggests.