First-time renters have accounted for just under one in 20 new tenancies across Britain this year so far, research by an estate agent indicates.
During the first five months of 2023, 4.6% of new tenancies were first-time renters, according to Hamptons.
Back in 2015, 6.1% of new tenancies were first-time renters, it said.
Across Britain, the average monthly rent for a newly let property in May was £1,258 – a figure which is 9.1% higher (or around a £106-per-month increase in cash terms) than a year earlier – Hamptons added.
The good news for tenants is that rental growth is starting to cool, and we expect that to continue throughout the remainder of the year— Aneisha Beveridge, Hamptons
Aneisha Beveridge, head of research at Hamptons, said: “Young adults are staying at home for longer in order to save up, with some skipping the rental market entirely and going on to purchase a home instead.
“The good news for tenants is that rental growth is starting to cool, and we expect that to continue throughout the remainder of the year.
“Average rents across Great Britain have risen 47% over the last decade, underperforming house price growth of 69% over the same period.
“However, the key issue is that over half of that rental growth has occurred within the last four years.
“And this has come at a time when household incomes are under pressure from other rising costs.
“That said, many landlords are also facing similar pressures, and this is one of the key factors underpinning rental growth this year.”
The Hamptons lettings index uses data from the Countrywide Group to track changes to the cost of renting.
The index is based on thousands of homes let and managed by Countrywide each year and is based on achieved rather than advertised rents.
