Generation Rent is More Prevalent than Ever Across the UK

Written by Posted On Thursday, 16 August 2018 11:18

Up to a third of millennials face renting for their entire life according to the latest report produced by the Resolution Foundation and as Britain’s population is increasingly being faced with the rapidly changing property market, renting provides a more flexible alternative when embarking on the purchase of a home.

A millennial refers to an individual reaching young adulthood in the early 21st century, and it is this demographic which may face renting a property throughout their entire life. More than 40% of individuals are suggested to have failed to step onto the property ladder by the age of 30, therefore renting becomes more attractive for UK residents compared to the ‘Generation X’ – those born between 1965 and 1980.

The government works tirelessly to lay down policies to improve the housing market, and it has been highlighted that millennials need more help than ever before. Affordability is a key driving force in property, so calling for more help for first time buyers and better protection for those who rent has worked in the favour of the younger generation.

There are several factors influencing the rising numbers of millennials who rent, underpinned by several market trends that are affecting the turbulent property sector. One of the most dominant reasons is the significant growth in property prices as the cost of purchasing a property has become unreachable for many and younger generations are becoming strained so turn to renting as the only affordable option.

Students form a large proportion of millennials increasingly facing the struggles of obtaining a home. Educational institutions usually fall within city centres, therefore it is no surprise property has become more desirable for students choosing to rent within the city, helping to justify most major cities as investment hotspots throughout the UK.

Renting monthly is a more achievable way to secure a property for young professionals who may otherwise fail to gather the amount for a hefty mortgage deposit on properties that are becoming increasingly out of reach due to extortionate prices.

Stamp duty taxes are made payable on the purchase of a property. Despite different thresholds and exclusions, tenants are automatically exempt when choosing to rent, helping young people on their way to dodge any hidden extra payments that come with the purchase of a property.

Committing to long term accommodation can sometimes be a daunting prospect, however renting provides an enticing option for someone hesitant and dubious about making their first step onto the property ladder, whilst also a more feasible way to save money every month to secure a deposit in the long run.

Investing in the private rented sector provides an unmissable opportunity for investors keen to tap into the increased demand to deliver properties of the highest quality. RW Invest, property specialists based in Liverpool offer a diverse range of developments across the UK. To view the collection click here to find out more on how to secure your next buy to let investment: https://www.rw-invest.com/uk-property-investments/.

Progressing into the near future, many major cities are standing proudly in the spotlight for discerning property investors to recognise the potential of the rental sector. Young people, students and new families flood to urban centres in the hope of securing better opportunities and the current undersupply of rented housing has helped developers combat an imbalance between rental properties available and the thriving rental population.

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