A new report has been released by Get Living, revealing the results of a poll concerning the current interest in property investment and support for renting. The London property management company included 3,065 UK 21-35 year-olds in its research, published in the report ‘Millennial Living in 2018: Insights for the UK’s Build-to-Rent Sector’.
They were asked questions about their thoughts on the current state of property investment. 57% responded that they underestimated the cost of buying their first home, with 37% upset to find the value of their property had dropped over the last 12 months. 45% of these young homeowners said that their monthly costs are much higher than those for renting.
Nine out of ten of these Millennials believe the flexibility offered by renting if their circumstances change is a benefit worth having.
Neil Young, CEO of Get Living, said: “These results provide an insight into a generation in the vanguard of the new on-demand subscription society where it’s increasingly common to rent, rather than buy, with the likes of Netflix, Spotify and Uber leading the way and now homes set to follow.
“In our first five years we’ve ignored the preconceptions around Millennials. We’ve found this generation are responsible renters, so we scrapped the standard six-week security deposit. They want to feel secure in their home, so we offered longer tenancies. They need flexibility, so we have a break clause after six months. They want transparency, so we’ve never charged fees. They’re a generation that’s savvy, safety-conscious and always connected. They don’t just eat avocados.”
Get Living point out that it was in 2013 that private renters in the UK overtook owner-occupiers aged 25-34 for the first time. The latest English Housing Survey from the Government shows an increase in this trend.
The company’s research follows a recent report by the Resolution Foundation, calling for the Government to implement overhauling reforms for the private rented sector (PRS). With 40% of Millennials expected to still be renting into their 40s, it is thought that tenancies should be made longer and the stabilisation of rent needs to be addressed.
So we turn to you, landlords, and ask what can you do to make the PRS the hospitable environment needed to support those looking to rent instead of purchase?
By encouraging positive experiences with your tenants, you can further improve the positive connotations connected to renting, and help the overall industry to flourish. Be welcoming, be helpful, and be receptive to your tenants’ needs. It’s understandable that not every problem can be fixed instantly, but a reassurance that you are aware and working on a solution can help to keep all of those involved happy.
Having the appropriate Landlord Insurance is a big part of this picture. To protect your investments, having comprehensive cover can be vital. Just Landlords provide the widest Landlord Insurance available as standard, with 40 essential covers included.