"The rental market has become a much trickier landscape to navigate, both for landlords and renters"
- Jon Cooper - Aldermore
51% of all young renters (aged 18–34) are dealing with significant stress around their living situation, yet are less likely to support increased regulation of the sector, which would enhance their rights and provide more support, according to newly released data from Aldermore.
Younger renters on the move
This stress may be because many tenancies have become increasingly insecure. Young renters in particular are much more likely to have had to move, with 32% having to up sticks in the last 12 months.
In some cases, this is a natural consequence of tenancies coming to the end of their term; however, in many cases, renters are moving because their landlords are stepping away from the market due to broader economic and regulatory concerns. 24% of young renters who moved in the last year were forced to move as their landlord was selling up.
This places further strain on young renters, as they are faced with the additional upheaval and expenses that come with moving – the average cost of which is £669.
…and struggling to meet costs
Overall, 19% of private renters have missed or been late to meet rent payments in the last 12 months, with this rising to 25% of those aged between 18-34.
Looking ahead, younger renters don’t see the picture improving, as 64% of young renters are scared future rent increases will mean they’ll need to drastically change their living situation, while older renters are less likely to have this concern (48%).
And with more of their disposable income going towards rent, many young renters fear they won’t be able to save as much towards their first home and exit the rental market. 61% of 18–34-year-old renters are worried they’ll never be able to afford their own home.
Younger renters are less supportive of government intervention
Despite the negative sentiment towards their renting situation, younger renters are less likely to support increased regulation of the sector, e.g., the Renters Rights Bill, which would enhance renters’ rights and provide more support to them. 71% of renters over the age of 55 support more regulation, compared to only 57% of 18-34-year-old renters.
“The rental market has become a much trickier landscape to navigate, both for landlords and renters," comments Jon Cooper, director of mortgages at Aldermore. "Unfortunately, for younger renters, who are earlier in their wealth accumulation journey, we’re seeing this group facing greater financial and emotional stress."
He adds, “Despite this, it’s interesting that younger renters are less likely to support greater regulation of the sector, like the Renters Rights Bill, which would help to alleviate some of the pain points they face, and provide them with greater support. There’s work to be done to ensure the Private Rental Sector remains a viable environment for both renters and landlords, and any further regulation to increase transparency and support must be done in a way that is fair, proportionate, and meaningful for all parties.”
