The last few years has seen the creation of 'Generation Rent', a generation that simply cannot afford to buy a property to live in so have been kept in rented accommodation.
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The last few years has seen the creation of 'Generation Rent', a generation that simply cannot afford to buy a property to live in so have been kept in rented accommodation. Whilst I'm still quite happy to keep equating at my owners in my dog bed and not even pay any rent, I have been wondering what happens as generation rent grows up? What will this generation mean for the rental market?
Having had years in rented accommodation they have become seasoned tenants who know what they want and what to expect. Consequently, the standard of rented accommodation is much better than it ever has been, and as tenants they are used to the flexibility and the freedom from responsibility that renting brings them. So will they actually have the desire to buy like previous generations?
Apparently it was drummed in to previous generations that as soon as you began to earn, you saved for a deposit for your first home. But the deposit now required for most people to buy a home is far more substantial than that faced by previous generations, something that is made harder to save for whilst renting. Couple this with increasing property prices and the tighter regulations on mortgages, and many more people simply will not be able to buy.
Hence, they will be renting for longer and longer, demand for rental property will be strong. Will this generation be looking for longer rental terms in order to give themselves further stability? Will they demand a higher standard of accommodation and a greater service from their landlord or letting agency as renting becomes more accepted as more of a longer term lifestyle?
Not only is this demand all good news for property investors and landlords. The changes that have applied to this generation could see the UK property market come inline with European countries such as France, Belgium, and Germany, where the private rented sector is much, much larger than the UK as their mindset become more acceptable of rented accommodation.
Eitherway, all this is great news for property investors and landlords. Whether you are a seasoned investor with a portfolio that you are looking to develop or a first time investor interested in learning more, get in touch with the experts at Belvoir! Sheffield for some no obligation advise to help you make the right property investment decisions.
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