Most of us know the rent crisis isn’t getting any better: as ‘generation rent’, we’re resigned to living in houses of 10 with mossy, thriving ecosystems growing on the kitchen ceilings, and paying £700 a month for a shed in Stratford. Now we’re also having to rely on parents to help with rent, according to significant new figures.
£1 billion a year is subsidised by ‘the bank of mum and dad’ for young people privately renting in the UK right now, as research from the housing charity Shelter shows. The study found that 450,000 adults needed financial help from their parents when renting. The Guardian also reports that statistics from YouGov, who surveyed over 4,000 adults, show that more than one in 20 have either taken or borrowed money from parents in the last year to help with moving and renting.
People aged between 18-24 were the most propped up by their parents demographic, with 11 per cent seeking financial support. 8 per cent of those aged 25-34 dipped in with their families for cash. According to Shelter, approximately £850 million each year is handed out for rent, and £150 million is shelled out to help with moving.
Campbell Robb, Shelter’s chief executive, told the Guardian: “With housing costs sky high it’s not surprising that the Bank of Mum and Dad is no longer just relied on for help with buying a home, but renting costs too. We know that the majority of private renters are forking out huge proportions of their income to cover the rent each month, and that’s not even taking into account the extortionate deposits and fees that need to be paid.”
Turning towards London, Shelter found that about 54 per cent of private renters struggled with their rent, a city where rent has risen by 19 per cent in the last 5 years. Although renting costs continue to escalate and young people pay an excess amount in agency fees, salaries don’t reflect it. New research also shows that under-35s will be the first generation to earn less than their parents. The Research Foundation’s study found that the demographic is earning £8,000 less during their 20s than people from the previous generation.