New research from Barclays has revealed that ‘rentflation’ has cost young tenants an extra £1,616 over the past year, highlighting the ongoing strain on renters across Britain. Despite reports suggesting that rental price increases are beginning to ease, many tenants – particularly those from Generation Z – continue to face steep rent hikes.
Young tenants hit hardest as rents climb
Barclays’ latest data shows that nearly six in ten tenants (58%) have seen their rent increase in the past 12 months, with almost three in ten (29%) reporting a rise in the last six months alone. For Generation Z renters – those aged between 18 and 27 – the situation is even more pronounced. Over a third (36%) of this group reported a rent increase in the past six months, with the average monthly rise amounting to £134.70 – or a hefty £1,616 per year.
Barclays estimates that the average British tenant is now spending an additional £105.90 each month on rent compared to a year ago. This increase is making it harder for young people to save for a deposit, with one in five renters (20%) identifying rising rental costs as a significant barrier to homeownership.
Despite these challenges, nearly six in ten Generation Z renters (57%) are actively saving for a deposit. Encouragingly, 40% of young renters believe they will be able to buy a home within the next five years – a level of optimism notably higher than the 23% average across all age groups.
Landlords under pressure as costs rise
While the focus often falls on tenants, landlords are facing increasing financial pressures as well. Barclays’ Property Insights data shows that rent and mortgage spending rose 7.7% year-on-year in February, as many homeowners transitioned from lower fixed-rate mortgages to higher interest rates. This rise in costs is filtering down to tenants through higher rents, putting landlords in a difficult position of balancing rising expenses with tenant affordability.
“The cost of borrowing has increased sharply over the past two years, and many landlords have little choice but to pass on some of these costs to tenants,” said David Long, a property consultant based in Manchester. “It’s not a case of landlords trying to profit – it’s about covering the increased costs of owning and maintaining properties.”
The average age of a first-time buyer in Britain has now climbed to nearly 34 – up from 32 just two years ago – reflecting the increasing difficulty in stepping onto the property ladder.
Market confidence holds steady despite rising costs
Despite mounting financial pressures, confidence in the housing market remains surprisingly robust. Barclays reports that market confidence reached 30% in early 2025 – its highest level since October 2024 – even with upcoming tax changes in England and Northern Ireland on the horizon.
Sian McIntyre, Managing Director of Mortgages and Savings at Barclays, said: “Renters are still determined to overcome barriers to homeownership, with this resilience testament to the value individuals place on investing in property.”
For landlords, this determination could signal positive long-term prospects, even if short-term pressures persist. A growing appetite for homeownership among younger renters may ultimately lead to greater stability and demand in the rental and housing markets alike.
