Generation Rent

Generation Rent

Generation Rent

You have no doubt heard the phrase ‘generation rent’ being bandied around in the press and by property journalists. This phrase neatly encapsulates the staggering growth in the rental sector that we have seen in UK and it was first coined by Price Waterhouse Cooper back in 2015.

PWC examine the housing market closely and they have made some forecasts that illustrate the phenomenal rise we are seeing and what’s likely to happen in the future. By 2025 PWC forecast that 25% of all homes will rented which is extraordinary when you think about it. To put some figures against this, that represents 7.2 million households that they believe will be renting.

At first glance, these forecasts seem off-the-wall but when you examine the fact that since 2001 the private rented sector has already doubled, it’s not as outlandish as it first appears. With housing supply still not meeting demand and house prices growing faster than earnings, many people are turning to renting because it’s the only affordable option left open to them.

If you examine the forecasts closer, by 2025 PWC suggest that over half of the people who are aged between 20 to 39 will be renting rather than buying. If that is the case, then ‘generation rent’ will be here to stay and there will be a long line of ‘generation rent’ landlords eager to capitalise.