FTSE 100 Live: Wage Growth Cools Faster Than Expected in Relief for BOE

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There’s another possible, rather obvious reason for slowing rents that came to my mind — and that’s young people (more likely to be renters rather than homeowners) who are simply moving back in with parents or not moving out at all in the first place.

After three years of rising rents, it seems like many graduates just can’t afford it — even those with jobs lined up.

One of the figures in the Zoopla report that jumped out to me was that the average renting household in London already spends 40.4% of their earnings on rent. That’s a huge chunk of someone’s salary, particularly for those just starting out in the workplace. And that’s the average, so for many people rent makes up an even bigger proportion.

At the other end of the scale, those with ready access to the Bank of Mum and Dad might be considering tapping into that support earlier than planned — rents have spiraled so much that even with today’s high mortgage rates, those repayments can end up being lower when spread out. And as the thinking goes, if that money can go into a tangible asset rather than to your landlord, now seems like a pretty good time even with interest rates at current levels.

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