It’s good news for landlords, as new research from The Nottingham Building Society reveals that only one in ten millennials plan to get a mortgage in the next 12 months. This is despite a third of respondents claiming that they are currently saving for a property.
It seems that this age group is set to continue renting for the time being, and this analysis from The Nottingham looks at the situation in further detail, which provides insight for landlords on what younger tenants value in a let.
The building society analysed the data from YouGov Profiles with the objective of looking into the current living arrangements of those aged 20 to 37. The respondents were questioned on their attitudes towards buying their first home as well as their overall thoughts about housing and the economy.
This data also found that 64% of those involved with the survey agreed that a better quality of life could be obtained in the country. A third of them claimed that they could never live in a big city.
The research indicates that millennials are rejecting inflated city prices and central locations in favour of locations where they can feel more at home.
They also value a sense of community in the area, with 52% wishing there were more community activities in their area. Only 20% feel that there is a better sense of community within cities, indicating that the generation will increasingly move away from properties in central city areas, to focus on more rural locations.
26% of respondents stated that they are currently living with parents. 12% currently live rent-free with parents, friends or family.
Despite Brexit uncertainty and the affects it may have on the housing market, there is still a positive outlook. 38% agreed that they are “better off” now than they were a year ago. 32% have admitted that they feel their household financial situation will improve over the next 12 months. This is compared to 20% of the overall national population sharing this outlook.
35% of those aged 20 to 37 have been taking into account news about the economy before making big purchases. The Nottingham believes that this implied Brexit could be a major factor contributing to why just 11% are planning to take out a mortgage and only 3% own their property outright.
Ben Osgood, Senior Mortgage Manager at The Nottingham, said: “Getting onto the property ladder can be a daunting experience, particularly in periods of economic uncertainty. People regularly compare a range of providers when it comes to their energy and insurance so it’s surprising the research found that just one in ten millennial house owners used a mortgage broker, meaning they don’t do the same for their mortgage. Especially considering it’s likely to be their most expensive outgoing.”
“That’s why we introduced the whole of market mortgage comparison for our members provided by Nottingham Mortgage Services. It’s important to us they leave with the right mortgage, regardless of provider. Getting the right advice and product should help the millennial generation feel more confident about their house purchase and know they have a mortgage that suits them, giving them the confidence to make that first leap.”