The average rent paid by millennials declined in 2018, according to online estate agency yieldit.
According to a survey of 2,000 UK renters, the biggest beneficiaries of overall falling rents were millennials – those aged between 18 and 34 – who reaped the benefits of moving into cheaper accommodation.
Overall, the average rent paid per person in the UK dropped by £30.64 (4.7%) last year, due to a greater number of people paying out less than £400 a month, while the number of people paying more than that decreased. In particular, the proportion of people paying a mid-range rent of £751-£1,000 fell by more than 2%.
The survey found that the number of 18-24-year-olds paying £400 or less increased by 11.2% last year. Similarly, 5.2% more of those aged 25-34 moved into the lowest rent bracket in 2018.
Taken together, this move into more affordable accommodation was responsible for a drop of 14.8% in the average rent paid by the millennial demographic as a whole.
By contrast, the shift was exactly the opposite among tenants aged 45 and above. This age group witnessed a 2.5% shift into accommodation costing more than £1,000 a month during 2018. As a result, older age groups saw their rents increase by around 1.5% over the year.
“It seems clear from the figures that many younger people are choosing to downsize and live in shared accommodation, perhaps in order to save money for a house of their own in the future,” Ryan Hughes, head of sales at yieldit, commented. “That reflects the rise in popularity of HMOs among landlords who prefer young professional tenants and are looking to achieve the highest returns possible for their money.”
He added: “However, the shift of older tenants into more expensive accommodation shows that, if landlords are looking for that sort of tenant, they should invest in larger, self-contained properties which provide more space and comfort.”
As more and more people rent each year – in particular those bracketed as millennials – the data suggests that the market will continue to adjust in the coming years to provide what tenants demand.