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Generation rent: how does it feel to be locked out of the housing market? Generation rent: how does it feel to be locked out of the housing market?
(about 1 hour later)
As house prices go up, so levels of home ownership have gone down. According to a report released this week, more than half of those under-40 will be living in rented properties by 2025. As house prices go up, so levels of home ownership have gone down. According to a report released this week, more than half of those under 40 will be living in rented properties by 2025.
‘It’s raising a deposit I find so difficult’‘It’s raising a deposit I find so difficult’
I am 39 and I have been renting privately for 15 years since I moved out of my family home. I’m on my own, so I cannot get a mortgage without a large deposit, and I’ve never had enough money to save towards it.I am 39 and I have been renting privately for 15 years since I moved out of my family home. I’m on my own, so I cannot get a mortgage without a large deposit, and I’ve never had enough money to save towards it.
I had to leave the first property about eight years ago because the landlord wanted to sell. I only received half of my deposit back as the estate agent managing the property claimed I had broken a window (which I hadn’t). I did not have time to dispute it as I needed the money for my next deposit.I had to leave the first property about eight years ago because the landlord wanted to sell. I only received half of my deposit back as the estate agent managing the property claimed I had broken a window (which I hadn’t). I did not have time to dispute it as I needed the money for my next deposit.
I moved three doors away, to save on moving costs, into a badly converted, rundown house that cost an extra £120 per month. My current landlord refuses to carry out repairs and when the boiler needed replacing, he arranged his own cheap plumber (against the advice of the estate agent), which resulted in a late-night call to Transco and the gas being cut off. The estate agent managing this property then went bankrupt (which I only found out about when I walked past their closed shop) and another estate agent took over the property management. A house inspection was carried out – the first during my tenancy. The agent made a list of repairs and maintenance work that needed carrying out. That was three months ago and I haven’t heard anything since but the rent is still collected every month. I moved three doors away, to save on moving costs, into a badly converted, rundown house that cost an extra £120 per month. My current landlord refuses to carry out repairs, and when the boiler needed replacing he arranged his own cheap plumber (against the advice of the estate agent), which resulted in a late-night call to Transco and the gas being cut off. The estate agent managing this property then went bankrupt (which I only found out about when I walked past their closed shop) and another estate agent took over the property management. A house inspection was carried out – the first during my tenancy. The agent made a list of repairs and maintenance work that needed carrying out. That was three months ago and I haven’t heard anything since but the rent is still collected every month.
My gross income is £14,000 per year. I pay £390 per month rent and when I made recent enquiries about mortgages, I was told I would need a deposit of at least £7,500. I do not have family members who can help me raise this amount. They are either renting themselves or struggling to pay their own mortgages. I do not have friends I could house share with as they are all either married, living rent-free with parents, in student accommodation or lucky enough to have parents who paid for their first home.My gross income is £14,000 per year. I pay £390 per month rent and when I made recent enquiries about mortgages, I was told I would need a deposit of at least £7,500. I do not have family members who can help me raise this amount. They are either renting themselves or struggling to pay their own mortgages. I do not have friends I could house share with as they are all either married, living rent-free with parents, in student accommodation or lucky enough to have parents who paid for their first home.
What frustrates me the most is that mortgage repayments on a suitable home would be much lower than what I pay in rent each month, but it’s raising a deposit I find so difficult. Why does 15 years of rent payments not make me eligible for a 100% mortgage with my own bank? What frustrates me the most is that mortgage repayments on a suitable home would be much lower than what I pay in rent each month, but it’s raising a deposit I find so difficult. Why do 15 years of rent payments not make me eligible for a 100% mortgage with my own bank?
Anonymous, BlackburnAnonymous, Blackburn
‘Some landlords and agencies forget there are real people living in these houses’‘Some landlords and agencies forget there are real people living in these houses’
If renting were a long-term option with decent rights, many people would feel more secure, more settled. I would like to buy a house – somewhere I know I could live for a number of years – that I could alter and adjust as I choose.If renting were a long-term option with decent rights, many people would feel more secure, more settled. I would like to buy a house – somewhere I know I could live for a number of years – that I could alter and adjust as I choose.
I have had awful service from agencies who seem to be incapable of sorting out emergencies quickly. We were left without a boiler for months at the start of the year. The landlord sent out five boiler men over a month to check there was nothing he could do but buy a new one (obviously this was going to cost a few hundred). Very frustrating. I can’t imagine he would have been so slow in his own house.I have had awful service from agencies who seem to be incapable of sorting out emergencies quickly. We were left without a boiler for months at the start of the year. The landlord sent out five boiler men over a month to check there was nothing he could do but buy a new one (obviously this was going to cost a few hundred). Very frustrating. I can’t imagine he would have been so slow in his own house.
After speaking to the Citizens Advice Bureau and a few other sources, we were told there was nothing we could do. We just had to sit it out and hope they sorted the problem quickly. It’s annoying because if we broke the contract we would have been out within the month. The contracts seem only to work one way.After speaking to the Citizens Advice Bureau and a few other sources, we were told there was nothing we could do. We just had to sit it out and hope they sorted the problem quickly. It’s annoying because if we broke the contract we would have been out within the month. The contracts seem only to work one way.
In the end, it was three months with no heating from January to March and showers at friends. I think some landlords and agencies forget there are real people living in these houses and it is not just a case of making more money and trying to cut corners. In the end, it was three months with no heating from January to March and showers at friends’. I think some landlords and agencies forget there are real people living in these houses and it is not just a case of making more money and trying to cut corners.
Anonymous, ManchesterAnonymous, Manchester
‘Many in my generation don’t have a stake in society and I am not sure the current political climate is helping us’‘Many in my generation don’t have a stake in society and I am not sure the current political climate is helping us’
I am 36 years old and I will probably never own a house in the UK.I am 36 years old and I will probably never own a house in the UK.
I completed my PhD in 2011, got married and recently became a dad. I worked in Toronto for a few years and rented apartments there. There were no fees, rents were reasonable (ie no more than 40% of my wages including bills and “city tax”) and quality of housing was high. Pets were not a problem and we could redecorate however we wanted because it is customary for the building managers to repaint the entire apartment before letting it out to the next tenants.I completed my PhD in 2011, got married and recently became a dad. I worked in Toronto for a few years and rented apartments there. There were no fees, rents were reasonable (ie no more than 40% of my wages including bills and “city tax”) and quality of housing was high. Pets were not a problem and we could redecorate however we wanted because it is customary for the building managers to repaint the entire apartment before letting it out to the next tenants.
Then we moved back to the south of the UK and for our first rental (a “renovated” ex-student house) we paid almost £500 in fees alone, and the rent for houses in the area where I found a job was about 60% of my monthly salary, not including bills and council tax which take another quarter. We couldn’t redecorate and we have two cats, which makes it impossible to find anywhere nice.Then we moved back to the south of the UK and for our first rental (a “renovated” ex-student house) we paid almost £500 in fees alone, and the rent for houses in the area where I found a job was about 60% of my monthly salary, not including bills and council tax which take another quarter. We couldn’t redecorate and we have two cats, which makes it impossible to find anywhere nice.
This was a shock to the system. I want to be able to put roots down in a community, and not move house constantly. I want to use my money to build a future and not pay someone else’s mortgage. At the moment, many in my generation don’t have a stake in society and I am not sure the current political climate is helping us. Save now, worry about the consequences later.This was a shock to the system. I want to be able to put roots down in a community, and not move house constantly. I want to use my money to build a future and not pay someone else’s mortgage. At the moment, many in my generation don’t have a stake in society and I am not sure the current political climate is helping us. Save now, worry about the consequences later.
In September we are moving from Hampshire to south Yorkshire. There isno other choice for us. And I am not moving because I necessarily want to buy a house – I am moving to be able to keep my family afloat, to not end up in a sea of debts and perhaps to start saving for a deposit.In September we are moving from Hampshire to south Yorkshire. There isno other choice for us. And I am not moving because I necessarily want to buy a house – I am moving to be able to keep my family afloat, to not end up in a sea of debts and perhaps to start saving for a deposit.
The rental market in the UK is out of control – there are no other words for it. Buying a house is nowhere near an option, but the alternative, renting, is not viable either. I feel that at every corner agencies are trying to shake me down for more money – ever higher rents and ever rising fees.The rental market in the UK is out of control – there are no other words for it. Buying a house is nowhere near an option, but the alternative, renting, is not viable either. I feel that at every corner agencies are trying to shake me down for more money – ever higher rents and ever rising fees.
With so many people stuck in the rent trap, the real winners are the rental agents, who can charge whatever they want because as a generation of renters we often have little choice but to pay up or be homeless.With so many people stuck in the rent trap, the real winners are the rental agents, who can charge whatever they want because as a generation of renters we often have little choice but to pay up or be homeless.
Arthur, HampshireArthur, Hampshire
‘After 7 years of renting, I have nothing – but my landlord profits quite nicely’ ‘After seven years of renting, I have nothing – but my landlord profits quite nicely’
I don’t think that making renting the norm will help much. Yes, quality of properties and landlord vetting needs to be improved (the Scottish laws preventing illegal premiums have been a massive help) because people who rent deserve to live someone safe and secure without the threat of eviction looming. But renting contributes massively to wealth inequality – when you buy, you are storing your own wealth. When you rent, you pay to someone else. After 25 years of paying a mortgage, my parents have £300,000 of capital and a house they love. After seven years of renting, I have nothing – but my landlord profits quite nicely (I’ve paid approximately £33,500 in rent in that time).I don’t think that making renting the norm will help much. Yes, quality of properties and landlord vetting needs to be improved (the Scottish laws preventing illegal premiums have been a massive help) because people who rent deserve to live someone safe and secure without the threat of eviction looming. But renting contributes massively to wealth inequality – when you buy, you are storing your own wealth. When you rent, you pay to someone else. After 25 years of paying a mortgage, my parents have £300,000 of capital and a house they love. After seven years of renting, I have nothing – but my landlord profits quite nicely (I’ve paid approximately £33,500 in rent in that time).
This is especially important as our generation has to pay back £50,000 odd in tuition fees, expects to have to chip in to help pay for our elderly parents end-of-life care, has to fund our own end-of-life care, has been told we can’t rely on state pensions (and the decent workplace pensions are being phased out) and some of us might even want to raise our own children? There’s not enough lifespan to earn enough to pay for all of this without the accumulated wealth that comes with property ownership (even then it’s a stretch). This is especially important as our generation has to pay back £50,000-odd in tuition fees, expects to have to chip in to help pay for our elderly parents’ end-of-life care, has to fund our own end-of-life care, has been told we can’t rely on state pensions (and the decent workplace pensions are being phased out) and some of us might even want to raise our own children. There’s not enough lifespan to earn enough to pay for all of this without the accumulated wealth that comes with property ownership (even then it’s a stretch).
Rent is also often far more expensive than a mortgage. My £450 monthly rent pays for a bedroom in a shared flat, whereas the mortgage on the whole property would be less per month. My friend’s parents loaned her £30,000 to buy a flat – she rents out the second bedroom to a mate, which covers mortgage and maintenance, and she has no housing costs after bills. I spend half my monthly income on rent. I could be asked to leave with two months’ notice at any point, and the list of repairs my landlord “means to get around to” can fill a side of A4.Rent is also often far more expensive than a mortgage. My £450 monthly rent pays for a bedroom in a shared flat, whereas the mortgage on the whole property would be less per month. My friend’s parents loaned her £30,000 to buy a flat – she rents out the second bedroom to a mate, which covers mortgage and maintenance, and she has no housing costs after bills. I spend half my monthly income on rent. I could be asked to leave with two months’ notice at any point, and the list of repairs my landlord “means to get around to” can fill a side of A4.
Renting is great for landlords, and it’s OK when you’re starting out in your career and want a degree of flexibility – so long as you get lucky with a decent landlord. But over a lifetime, it beggars you. It’s not sustainable in an economy where state support is being slowly pulled back.Renting is great for landlords, and it’s OK when you’re starting out in your career and want a degree of flexibility – so long as you get lucky with a decent landlord. But over a lifetime, it beggars you. It’s not sustainable in an economy where state support is being slowly pulled back.
Kay Lyons, EdinburghKay Lyons, Edinburgh
‘I was spending over 80% of my wages on living expenses’‘I was spending over 80% of my wages on living expenses’
I’ve been lucky to have had a couple of good landlords and access to a guarantor. Many credit companies now insist on a guarantor if you haven’t rented in the last three months, even if you have a great credit history and an unbroken line of rent before that. My last rented property, a small three-bedroom terrace in one of Leicester’s outlying estates (Mowmacre Hill), cost £600 per month. I was working full-time, but was only bringing in £1,100 per month. My partner was on the minimum wage and juggling work with a degree. I was spending over 80% of my wages on living expenses. Needless to say, saving was extremely difficult. With the ambition of owning a home, and to help out, we moved into my partner’s mum’s council house. Between the three of us – and improved job prospects for myself and my partner who finished her degree (her mother only works part-time) – we have finally started saving. At 30, I didn’t expect to be living with my girlfriend’s mother, and it has been awkward at times. So much so that we began looking to rent again (now we earn a respectable wage together), but the demand is so high that good properties are snapped up, and what is left are extremely over priced. I saw a two-bedroom terrace for £650 a month! The search continues... I’ve been lucky to have had a couple of good landlords and access to a guarantor. Many credit companies now insist on a guarantor if you haven’t rented in the last three months, even if you have a great credit history and an unbroken line of rent before that. My last rented property, a small three-bedroom terrace in one of Leicester’s outlying estates (Mowmacre Hill), cost £600 per month. I was working full-time, but was only bringing in £1,100 per month. My partner was on the minimum wage and juggling work with a degree. I was spending over 80% of my wages on living expenses. Needless to say, saving was extremely difficult. With the ambition of owning a home, and to help out, we moved into my partner’s mum’s council house. Between the three of us – and improved job prospects for me and my partner who finished her degree (her mother only works part time) – we have finally started saving. At 30, I didn’t expect to be living with my girlfriend’s mother, and it has been awkward at times. So much so that we began looking to rent again (now we earn a respectable wage together), but the demand is so high that good properties are snapped up, and what is left are extremely overpriced. I saw a two-bedroom terrace for £650 a month! The search continues ...
Alan Ball, LeicesterAlan Ball, Leicester
‘The rental market is draining all my money’‘The rental market is draining all my money’
I am currently paying £600 per month to lodge in a family’s attic in Surrey. It’s a nice room in a nice location, but this is half my monthly salary. I am currently looking for somewhere more central to rent but will have to pay £1,500 upfront in deposit, estate agent fees and the first month’s rent. This is more than my monthly salary and, as a recent graduate from a working class family, is money I don’t have. The rental market is draining all my money and means I can’t save in any meaningful way. No idea where I’m going to get a house deposit from! I can’t imagine how I could get on the property ladder – unless I switch to a career in banking rather than education... I am currently paying £600 per month to lodge in a family’s attic in Surrey. It’s a nice room in a nice location, but this is half my monthly salary. I am currently looking for somewhere more central to rent but will have to pay £1,500 upfront in deposit, estate agent fees and the first month’s rent. This is more than my monthly salary and, as a recent graduate from a working class family, is money I don’t have. The rental market is draining all my money and means I can’t save in any meaningful way. No idea where I’m going to get a house deposit from! I can’t imagine how I could get on the property ladder – unless I switch to a career in banking rather than education ...
Grace Davies, SurreyGrace Davies, Surrey
‘House prices continue to rise but our pay does not’‘House prices continue to rise but our pay does not’
I currently share private rented accommodation with four others. We are all aged between 30 and 35. This is the only option for us at the moment as, even though we all work full-time, we don’t earn enough to get on to the property ladder. The properties in our area are all so expensive and there is no way we can come up with the large deposit. None of us have family members that we can borrow from either. House prices continue to rise but our pay does not. Working for the NHS we haven’t had a pay rise in four years. We will no doubt be renting for the foreseeable future. We are all resigned to the fact that we will probably never own our own homes. I currently share private rented accommodation with four others. We are all aged between 30 and 35. This is the only option for us at the moment as, even though we all work full-time, we don’t earn enough to get on to the property ladder. The properties in our area are all so expensive and there is no way we can come up with the large deposit. None of us have family members that we can borrow from either. House prices continue to rise but our pay does not. Working for the NHS, we haven’t had a pay rise in four years. We will no doubt be renting for the foreseeable future. We are all resigned to the fact that we will probably never own our own homes.
Anonymous, LancasterAnonymous, Lancaster
‘Every year we don’t know whether the landlord is going to sell’‘Every year we don’t know whether the landlord is going to sell’
My partner and I are both in decent jobs and could easily afford mortgage repayments but we are unable to save the money required for a deposit. We don’t have parents who are in a position to help us and nor would we ask if they were.We live in a relatively rural area and our child has just started primary school. As a result, we are restricted in the area in which we can look for alternative accommodation without moving our child to a different school.We have requested a longer lease – two to three years – from our landlord, who refuses our request. Every year we don’t know whether the landlord is going to sell and we’re going to have to look for another house. We tend to pay for basic repairs ourselves, which should really fall under the landlord’s remit, as we don’t want to upset them and be given notice.One thing we can be certain of is an annual rent increase. We paid nearly 10% extra last year in order to stay in the same area and not uproot our child from school. My partner and I are both in decent jobs and could easily afford mortgage repayments but we are unable to save the money required for a deposit. We don’t have parents who are in a position to help us and nor would we ask if they were.
We live in a relatively rural area and our child has just started primary school. As a result, we are restricted in the area in which we can look for alternative accommodation without moving our child to a different school.
We have requested a longer lease – two to three years – from our landlord, who refuses our request.
Every year we don’t know whether the landlord is going to sell and we’re going to have to look for another house. We tend to pay for basic repairs ourselves, which should really fall under the landlord’s remit, as we don’t want to upset them and be given notice.
One thing we can be certain of is an annual rent increase. We paid nearly 10% extra last year in order to stay in the same area and not uproot our child from school.
It’s not an enjoyable feeling being a parent and not being able to provide long-term security for your family.It’s not an enjoyable feeling being a parent and not being able to provide long-term security for your family.
Anonymous, East SussexAnonymous, East Sussex
‘It starts to make you wonder, do we even matter at all?’‘It starts to make you wonder, do we even matter at all?’
Since leaving home, I have been renting. I’ve been very lucky in that I have always shared the financial burden of renting with my partner. If I wanted to live on my own, I would have no way of being able to afford it.Since leaving home, I have been renting. I’ve been very lucky in that I have always shared the financial burden of renting with my partner. If I wanted to live on my own, I would have no way of being able to afford it.
What I find the most frustrating is the sense of being trapped. You know that owning a mortgage would offer you security, lower monthly costs, and a place you can call home. Instead, I cannot even begin to make progress on saving for a deposit because rent eats up most of our money. So we live in a flat, which we struggle to personalise, as we cannot change any aspect of the interior. It is a constant reminder that this is not your home, you just rent the idea of it from a faceless landlord/landlady.What I find the most frustrating is the sense of being trapped. You know that owning a mortgage would offer you security, lower monthly costs, and a place you can call home. Instead, I cannot even begin to make progress on saving for a deposit because rent eats up most of our money. So we live in a flat, which we struggle to personalise, as we cannot change any aspect of the interior. It is a constant reminder that this is not your home, you just rent the idea of it from a faceless landlord/landlady.
For example, we live in Brighton where we pay £800 per month for a small one-bedroom flat. This increased to £820 per month because.... in all honesty, I don’t know why the rent increased but that is what seems to happen annually. Sadly, we don’t receive a similar annual increase on our savings. For example, we live in Brighton where we pay £800 per month for a small one-bedroom flat. This increased to £820 per month because … in all honesty, I don’t know why the rent increased but that is what seems to happen annually. Sadly, we don’t receive a similar annual increase on our savings.
Now bring into this complicated equation the fact both my partner and I are self-employed and run two businesses and the situation becomes farcical.Now bring into this complicated equation the fact both my partner and I are self-employed and run two businesses and the situation becomes farcical.
We are lucky that both our businesses are established and our wage is secure. However, we struggle to get approved to rent properties. We have to hand over our annual accounts, have guarantors or just lie on our application. If we struggle with being approved for renting, then a mortgage application seems impossible. The size of the deposit would have to be incredibly large.We are lucky that both our businesses are established and our wage is secure. However, we struggle to get approved to rent properties. We have to hand over our annual accounts, have guarantors or just lie on our application. If we struggle with being approved for renting, then a mortgage application seems impossible. The size of the deposit would have to be incredibly large.
I think some people think that our generation are being greedy for wanting everything. They say that they struggled at our age also, maybe you should cut back on your lifestyle or move in with your parents to save money. We don’t go on holidays, any money we do have is reinvested into our businesses, and moving in with our parents is not a possibility. Instead, we are trapped in this cycle of renting. I think some people think that our generation are being greedy for wanting everything. They say that they struggled at our age also – maybe you should cut back on your lifestyle or move in with your parents to save money. We don’t go on holidays, any money we do have is reinvested into our businesses, and moving in with our parents is not a possibility. Instead, we are trapped in this cycle of renting.
It does make us angry. We feel that it is all right for landlords/landladies to rent our properties for an extortionate amount of money because a) they can and b) this is their retirement fund. What about our retirement? Why should we have to put up with this so that another person’s pension fund is secured? It does make us angry. We feel that it is all right for landlords to rent our properties for an extortionate amount of money because a) they can and b) this is their retirement fund. What about our retirement? Why should we have to put up with this so that another person’s pension fund is secured?
It starts to make you wonder, do we even matter at all?It starts to make you wonder, do we even matter at all?
Rachael King, BrightonRachael King, Brighton