The report shows that the annual average cost of housing for those aged under 35 is £8,571, more than double that of those aged 50-64. Yet the under-35s are also the group with the least owner-occupiers, thus the large proportion of this group has no equity to show from their high expenditure on housing.
Savills have carried out a five year forecast, reflecting research done by Generation Rent showing private renters will continue to grow at a fast pace. Savills predicts that by 2019, the number of private renters will increase from 20% in 2014 to 24%. This represents an additional 1.2 million households renting over the next 5 years. The numbers are even more stark amongst the under-35s with 46% currently privately renting – 54% in London. By 2019, the proportion of households under 35 in the private rented sector will increase to 66%.
This forecast for 2019 also shows an increasing trend away from owner-occupation with Savills predicting this will actually reduce by 202,000 households. Amongst the under 35s, Savills believes that just 16% of under 35s will own their own home by 2019, down from 28%.
This increase in private renting, especially among the under-35s where a massive two-thirds of households will be privately renting, means politicians must listen to the concerns of private renters and adopt pro-renter policies.
We believe that MPs need to stand up for private renters and commit to making the rental market fit for purpose. You can ask your MP to give renters a voice in Westminster and become a Renter Champion here.