Young people who live on their own spend more than two thirds (69%) of their take home pay on rent, Landbay’s Rental Index has revealed.
For tenants aged 18-39 and living on their own 69% of their monthly post-tax income of £1,447 is spent on £1,012 of rent.
In a shared house of two they typically spent 39% on rent each.
John Goodall, chief executive and founder of Landbay said: “For intermediaries, this generation is the future of their client base, a generation who will face a tough financial journey.”
“Whether these millennial tenants are renting as a stepping stone on the way to home ownership – or in some cases choosing to rent for life – this generation are relying on a well-served buy-to-let market to ensure rental growth doesn’t become unbearable.
“What is now needed is some firm government commitment to improving standards, affordability and supply of rental properties.
“Institutional investment and the subsequent growth and professionalisation of the private rental sector are already helping control rental growth and improve living standards for renters, so we hope to see some clear plans outlined in this month’s party manifestos ahead of the General Election in June.”