The renting sector is becoming saturated year upon year as millennials stray further away from the property buying market as many are resisting making their first move onto the property ladder. It is important to understand exactly what millennials are after and how the current renting landscape can help satisfy their needs and desires.
It comes as no surprise that millennials now make up for one of the most dominant demographics within the rental market as statistics currently show that almost half of the current housing market are millennials with 90% of those being renters.
For landlords in 2018, it is important to acknowledge the profiles of this group in order to meet their requirements, particularly as they are one of the main catalysts behind the evolving standards of housing, particularly student housing.
According to recent data, renting is emerging as a cheaper alternative to buying in more than 50% of British cities, with the figure rising by 14% by 2016. Therefore, millennials are finding themselves in an environment with escalating house prices posing an increasingly expensive situation, quite often with their salaries falling short of their outgoings.
Renting is surfacing itself as a more affordable option as it omits the need for large upfront payments, mortgages, home maintenance, making them far more accessible and obtainable for the everyday millennial. RW Invest, property investment experts specialise in buy to let properties across numerous UK hotspots, offering unbeatable investment opportunities that assure profitable rental returns in unbeatable areas.
One of the main benefits of renting to millennials is flexibility. This demographic are often hesitant to settle down in a permanent location for longer periods of time as job opportunities are becoming so prevalent across numerous cities, particularly those with major educational facilities such as world class universities, as they are grabbing the attention of graduates and young professionals. Therefore, entering into a six month or yearlong lease is a much more viable option for those who want freedom residing in their city of choice for a shorter term.
Renting a property to millennials not only opens up the possibility of heightened flexibility on where a tenant can live, it also provides more wriggle room on changing who they live with over a set period of time. Renting introduces versatility and adaptability amongst living arrangements that are open to change depending on circumstance.
Currently, the economic climate has placed significant strain on the housing market, particularly for those venturing on the property ladder for the first time, leading to a renting surge. Renting instead of long term housing through buying is by far the most popular option, coining this generation ‘generation rent’.
Over the last decade the number of young people in the private rented sector has escalated rapidly, with the average age of a typical first time buyer climbing to 33 compared to 30 in 2006. Latest figures from the latest English Housing Survey reveal that 46% of 25 to 34-year olds are renting a property in the private rented sector, a significant increase from just 27% ten years ago in 2006/2007.
Home ownership levels amongst the young has experienced extreme decline from 57% from ten years ago to a measly 37% now, proving the rising standards and opportunity evident within the renting market. But what has brought about this significant change?
Wages have wavered, making home ownership unreachable for many for those who cannot lend money from parents, stay living in their family home or join together finances from a significant counterpart, leaving today’s housing market a challenging feat to achieve.
Categories: Real Estate