Recent analysis reveals that younger tenants in Britain have experienced a staggering £3.5 billion rent increase, reaching a record high in 2024 as landlords pass on rising mortgage costs.

The number of renters under 45 has surged by nearly 150,000 in the past year, totaling 3.4 million, marking the fastest growth in a decade due to dwindling homeownership opportunities.

Individuals under 45 now account for 66% of all rent paid in Britain, amounting to £56.2 billion, according to Hamptons estate agents.

The total rent paid in the UK has skyrocketed by 71% over the last decade, exceeding £85 billion in 2024.

Aneisha Beveridge from Hamptons highlighted that high mortgage rates have hindered young people's ability to buy homes, resulting in a demographic shift in the rental market favoring millennials.

The winding down of the Help to Buy scheme in March 2023 has further pushed young first-time buyers into the rental market for longer periods.

In contrast, the rent burden on older tenants has decreased by £700 million, with the number of renters over 45 declining by 79,000.

Upcoming legislation from Labour aims to strengthen renters' rights, which may lead to additional rent hikes as landlords adjust their pricing strategies in anticipation of new regulations.

The surge in rents has been driven by escalating mortgage costs following the Bank of England's interest rate hikes in response to inflation, with rents peaking at an annual rise of 10.2% in December 2023 before tapering to 2%.

As of January 2025, Rightmove reported a 1.7% increase in average asking prices for new homes, the largest January increase since before the pandemic, with prices now averaging £366,189.

Despite these economic challenges, Halifax has reported a 25% increase in house prices over the past five years, with the average price reaching £300,000.

The Office for National Statistics indicated that house prices were rising at an average annual rate of 3.3% as of November 2024, with notable regional variations.