GENERATION RENT: Millennials in Sheffield 'shell out nearly £110,000 on rent' by age of 35

Inflation has outstripped rent rises in Sheffield since 2005, an estate agent claims
Inflation has outstripped rent rises in Sheffield since 2005, an estate agent claims
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Millennials in Sheffield will have spent nearly £110,000 on rent by the age of 35, it has been estimated.

People born in the mid-1980s to late 90s, dubbed 'generation rent', will have spent enough on rent to have bought a modest home in the city, an estate agent has calculated.

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Maz Iqbal, of Sheffield Residential, worked out that based on average costs, a Sheffielder leaving home in 2005 aged 22 would by now have shelled out £108,768 on rent.

But, despite the huge expenditure, he questioned the perceived wisdom that it was harder than ever for young people to save for a deposit on a home of their own.

"It’s no wonder local millennials can't afford to buy a Sheffield home given their tremendous debt. This means younger Sheffield millennials will probably carry on renting for the foreseeable future, simply because the prospect of buying a home is not yet achievable… that is until you look more deeply at the numbers," he wrote on his property blog.

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"The average rent of a Sheffield property in 2005 was £632 per month. If it had risen in line with inflation, today that would be £890 per month, yet it only stands at £755.

"Looking over the last 12 years, adding up all the differences between what the average actual rent was compared to what it should have been if rent had gone up by inflation, the average Sheffield millennial tenant would have paid £119,539.

"This means that an average 35-year-old Sheffielder, who has been renting since 2005, is better off by £10,771 when comparing the actual rent paid compared to what it would have been if it had risen by inflation. In a nutshell, tenants have done well due to the sub-inflation growth in rents."

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Mr Iqbal added that the evidence suggests older millennials are starting to use those savings and 'gradually shifting towards home ownership, albeit often with a little help from the 'bank of mum and dad'.