‘Rentflation’ has cost young people an extra £1,616 on their rent bill in the past year, according to new data from Barclays.

The bank polled tenants to discover that despite reports of rental increases slowing across Britain, they continue to feel the pinch.

Nearly six in ten – at 58% - say their rent has increased in the past 12 months, and three in ten – at 29% - in the last six months.

This is most acute for so-called Generation Z – who are aged between 18 and 27-years-old, with 36% reporting a rise in the past six months.

'Rentflation'

Rentflation has left the average British tenant £105.90 out of pocket each month, estimates Barclays, with one in five (20%) citing rising rental costs as one of the biggest barriers to owning a home.

Generation Z report an average increase of £134.70 per month, the equivalent of £1,616 a year.

Almost six in ten Generation Z renters - at 57% - are saving for a deposit to buy a home, while four in 10 - at 40% - believe homeownership is within reach in the next five years, compared to 23% across all ages.

Meanwhile, Barclays’ data reveals that the average age of a first-time buyer in Britain increased to nearly 34 in 2024, up from 32 two years earlier, as homeownership becomes more challenging.

Data from Barclays Property Insights shows that rent and mortgage spending increased 7.7% year-on-year in February, as more homeowners moved from lower fixed-rate mortgages onto higher rates.

Meanwhile, confidence in the housing market has grown to 30%, its highest level since October 2024, despite the upcoming tax changes in England and Northern Ireland.

Sian McIntyre, of mortgages and savings, said: “Renters are still determined to overcome barriers to homeownership, with this resilience testament to the value individuals place on investing in property.”

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