The 'Bank of Mum and Dad' has long been relied upon by young homebuyers unable to get on the property ladder because they cannot save up a large deposit.
But now it looks like parents are also helping out young tenants unable to afford their rents.
Help for Millennial Renters
Shelter recently claimed that parents are shelling out as much as £1 billion a year to help their children pay their rents.
In total, 450,000 people are borrowing money from their parents in order to pay their private rents, as reported in The Guardian and other news outlets.
It's not just the monthly rent that parents are helping out with: they are also chipping in to cover the deposits, fees and moving costs, which can quickly add up.
It is unsurprisingly the younger renters who are relying the most on their parents, with 11% of the 18-to-24 age group needing help, and 8% of the 25-to-34 age group needing assistance.
Shelter also claimed that over half of renters are struggling to pay their rents in London, and that fees have risen 19% in the last year alone. With London wages failing to rise at the same rate, a lot of renters are having difficulty paying for a place to live.
How Can You Save on Rent?
With so many people struggling to pay their rent, it makes sense to look at ways to cut the cost of renting to make savings where available. Here are a few ideas for ways you could do this:
- Negotiate a longer rental period if you can. This prevents the landlord from increasing the rent every six months.
- Always carry out extensive research for properties to rent in your area. You may find that there are big differences in rental prices for similar properties if you look around, helping you to make an instant saving.
- Always consider negotiating to get the rent down. This won't work all the time, and it often depends on where you live and how keen the landlord is to rent the property, but it's always worth a try.
- One time when you may have more negotiating power is when you renew the tenancy agreement. It is far less hassle for a landlord to keep you on in the property for as long as possible, especially if you are a responsible tenant who pays the rent on time.
- Remember that you could make savings in other areas like your gas and electricity bills by choosing a cheaper provider.
- Also consider other expenses like transport costs. It may be worth paying a bit extra to live somewhere more central, which could save you money in your transport over the coming months.
- Make sure you don't lose money where you don't have to. Check the inventory very carefully and make sure there is nothing missing that you could end up having to pay for when you move out.
Always Look for Ways to Save
The Bank of Mum and Dad may come to the rescue when many young people are unable to afford their rents, but it is not an option for everyone. So always look at ways that you can save on your rent so you can live somewhere you can afford without having to worry about paying your rent each month.