It’s not just about affordability, renting is now becoming a lifestyle choice

With home ownership at its lowest levels for 30 years, new research shows that renting is not just about affordability, it’s also become a lifestyle choice, especially across the younger generation. Home ownership rates have dropped from 46% to 20% for 25-year-olds over the last 20 years and whilst some of this can be put down to lack of affordable housing, there is no doubt that we are seeing a fundamental shift in attitudes towards home ownership and that it is no longer considered the be all and end all.

In fact, a recent tenant survey by Knight Frank illustrates that many are now choosing to rent because it fits in with their lifestyle. According to the survey, 38% of under 35s and 49% of under 25s indicated they didn’t want the commitment of a mortgage and that renting allowed them the flexibility they wanted.

Renting allows younger people to enjoy a higher standard of accommodation than if they were buying and it also doesn’t tie them down to a particular location. Younger people are far more prepared to move to where the best job opportunities are and having a mortgage would restrict them in this respect.

20% of households are now let out to private tenants and Knight Frank predicts that this will grow further. They forecast that investment in the rented sector will increase to £50 billion by 2020 as investors look for reliable, regular rental income and adopt buy and hold property investment strategies.

Buy and hold buy-to-let investments is certainly a strategy we endorse here at Barrows and Forrester so if you would like to find out more about some of the opportunities that we have, please contact us now.
13 January 2017
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