UK Renters' Bill Skyrockets: Record growth pushes annual rent bill to £85.6bn

Image credits: Towfiqu barbhuiya / Unsplash

In 2023, tenants across Great Britain paid a reported £85.6bn in rent. Yes, you read that right! That's equivalent to the total value of all homes sold in London last year. With double-digit rental growth, the total rent bill has seen an increase of £8.0bn from 2022, marking the biggest annual jump on record.

Now, if we look back to 2010. The total rent bill was £40.3bn. Fast forward to today, and it's more than double! This surge is partly due to a 25% increase in renting households and a rise in rents.

Millennials (born 1980-1994) continue to dominate the rental market, spending a record £36.9bn on rent in 2023. However, the tail end of this generation is renting for longer due to strong rental growth and tougher affordability.

Meanwhile, Generation Z (born 1995-2012) spent £30.5bn on rent in 2023, marking the biggest annual increase of any generation.

London, saw the strongest rental growth over the last year. The average rent in the capital rose to £2,415 pcm in November, making tenants in the capital pay a record £32.1bn in rent this year.

Link to research article: Record rental growth pushes annual rent bill to £85.6bn in 2023 | Estate Agents London | Letting Agents | South East England | Hamptons