Moving out of my family home is such a scary prospect to me. I literally dread the day when I move out, I rely so much on my Mam I honestly don’t think I’d cope! The idea of moving out is becoming increasingly daunting to myself and my partner with the longer term trend of rising house prices.
It comes as no surprise to me that Millennials now make up the dominant demographic within the rental market. In fact, it’s estimated that almost half of the current housing market are millennials with 90% of those being renters. With that in mind, 2018 will likely show a continuation of the rise of the millennial tenant, even Theresa May’s admitted she’s ‘worried’ about young people’s housing prospects.
Millennials are apparently half as likely to own their own home as they were 20 years ago, new research has found. A report by the Institute for Fiscal Studies, which looked at the decline of homeownership among young adults, found that just a quarter of middle-income earners now own their own home, down from two in three in the 1990s.
The key reason for the decline points towards the sharp rise in house prices relative to the average income. Mean house prices were 152 percent higher in 2015–16 than in 1995–96 rising from £79,000 to £198,000 after adjusting for inflation. By contrast, net family incomes of those aged 25–34 grew by only 22 percent over the same twenty years. As a result, the median ratio between the average house price and annual income doubled from four to eight.
Profile Of The Millennial Renter
Since some of us have no choice when it comes to getting on the property ladder, renting really is our only option. Since we make up the majority of the housing market what is it were actually looking for in a property?! For landlords in this day in age, it’s important to
acknowledge the profiles of our age in order to appeal to our lifestyles and desires. A millennial is anyone who reaches young adulthood (18-25) in the early 21st century FYI.
• Pet-friendly, who doesn’t want a dog when they get their own home though?
• Storage space! What can I say I have a lot of clothes!
• We’re more eco-conscious than ever now so energy saving features are a bonus.
• We’re tech-savvy and are likely to prefer to communicate via text message or email, we need USB portals and definitely plenty of plugs! Plus, fast internet connection/WiFi
• A decent garden or access to outdoors, maybe a balcony?!
• Modern Decor
• Speedy response times
What Are The Advantages Of Renting Over Buying For Millennials?
According to recent data, renting is now cheaper than buying in more than 50% of British cities, with this figure has increased by 14% since October 2016. Marry that with increasing conveyancing costs and removal fees and millennials find themselves in an extremely expensive situation that their salaries often can’t match.
Renting a property extracts large deposits, mortgages and home moving payments from the equation, making it a far more accessible choice for us millennials.
• Flexibility – This is one of the main advantages of renting over buying for millennials who might not want to put roots down in a permanent location. With fluidity in the job market and an increased
desire to travel, entering into six-month or year-long lease contracts is a much more viable option.
• Chance for diverse cohabiting – Renting a property not only opens up flexibility on where a tenant can live, it also means they have more flexibility when changing who they live with over a period
of time. From friends and family to romantic relationships, renting leaves room for versatile and adaptable living arrangements.
• An alternative to the property ladder – The past few years have been difficult for first-time buyers to get onto the property ladder. This has led to a surge of people opting to rent instead. Many millennials are now viewing renting as a long-term housing solution and not the short-term temporary arrangement it has been in generations previously.
After doing my research and discovering HomeLet, I think renting could be a short-term option for me in the future! Being an adult is so overrated isn’t it?!