The turmoil of the housing market has been wreaking havoc for young first-time buyers. Prospects of owning a first home are dwindling despite government incentives that aim to help young people aiming to get onto the property ladder. Renting seems the more achievable option to gain independence from the homes of parents and guardians. However, there is a general lack of optimism among young people and the possibility of buying their first property. This will not help matters for those in the West Midlands who may face rent increases.
According to the Landbay national rent review, rent has increased in the West Midlands during 2017, despite negative rental growth in the UK. The significant slump of renting in London has meant that the UK rental rate has been dragged down. Falling by -0.01% in November 2017, it is the first time in half a decade that rental growth has entered negative territory. Whilst renting in London has decreased by -0.83%, the rest of the UK remains positive at 1.27%. In the West Midlands, the regional rate of rent has increased by 1.52% following 2016. The average cost of renting is £682.80 in the West Midlands. Without considering London, average monthly rent sits at £759 which is a £750 increase at the turn of the year.
The news is extremely disheartening for young people who already have low expectations for obtaining their first property. At present, 41% of young adults expect to full rely on the private rental sector for their entire lives, with no hope of ever owning their own home. From the age of 21, renting outside of London can cost up to £110,800 by the time young people by a house, this can go up as far as £1.1 million if they choose to be lifetime renters. With interest rates on the rise there is set to be more pressure put onto the rental sector. There needs to be action from the Government to tackle the supply of housing and maintaining appropriate standards. Most importantly, prices need to reflect wages so that there is affordability. There also needs to be a radical house building plan for buyers to purchase as well as purpose-built rental properties. Without such action, rental prices are in danger of rising continuously over the coming years.