First-time renters accounted for just 4.6% of new tenancies during the first five months of the year, as more would-be tenants rely on the hotel of Mum and Dad.
With average monthly rents topping £1,000, young adults can save £12,290 by living rent-free with their parents each year, according to Hamptons, which reports that rising rents mean the share of tenants leaving the family home has been steadily falling in Great Britain since 2015.
Then, first-time renters made up 6.1% of all tenants who moved into a new home – equating to 71,860 new rented households in England – while during the first five months of 2023, this fell to 4.6% – about 43,280 new rented households.
Hamptons estimates that if young adults continued to move from the family home into rental accommodation at the same pace they did eight years ago, it would mean there would have been an extra 104,550 households looking to rent in England between 2016 and 2023.
Staying at home
As rents have risen, would-be tenants are staying at home for longer to build up their savings to afford a larger home or rent with friends.
It says 32% of tenants who moved out this year rented a studio or one-bed in Great Britain, down from 37% last year, while the proportion who left the family home and rented a prperty with at least two bedrooms rose from 63% in 2022 to 68% this year.
Aneisha Beveridge (pictured), head of research, says young adults are staying at home for longer to save up, with some skipping the rental market entirely and going on to buy a home instead.
She adds: “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.”
Read more about rising rents.
