It’s no secret that over recent years, more and more young people are choosing to rent. The number of young couples and individuals without a foot on the property ladder continues to increase, and whilst this is great news for property developers and landlords, there has been much discussion as to why.
This week the Edinburgh News reported that the number of young people choosing to rent rather than buy is due to something called the “Bridget Jones effect”. The effect describes the trend among twenty and thirty-somethings to rent rather than buy, particularly those who are unmarried. The prevailing theory behind young people’s decision to rent rather than buy is choice. With many adults waiting longer to settle down and start a family, and instead using their younger years to focus on their career and social life, renting gives more freedom. You’re not tied down to one property, or even one town or city, so should you need to move on, this isn’t a problem. Without any family ties, many young people are willing to travel for work or even change base due to personal relationships, and having a mortgage to pay can make this difficult.
However, is this the only reason that the “first time buyers” demographic is changing? It is estimated that the average individual in their twenties would have to save for up to 30 years in order to afford a deposit on a house, and even with the government’s Help to Buy Scheme, the cost of mortgage repayments are still too much for many. Is it really a choice to rent, or is it simply out of financial necessity? Many young people prefer cities to country living due to the larger supply of work, social activities and culture, however properties for sale in cities are even more costly than those in the suburbs. Due to the high demand in cities such as London, Manchester and Liverpool, high quality rental properties can be found at extremely reasonable prices, whereas a mortgage on a city centre apartment could be almost impossible on an average twenty or thirty-something wage.
Whatever the reason, the property market is booming and there has never been a better time to invest. HMO properties are growing in popularity, not just among students, but graduates and those who don’t want to leave the social elements of group living behind. If you invest with Mistoria, we can take care of your property, from start to finish. We’re one of the most highly recognised property investment companies in the UK, and our bespoke selection of companies, means that we have a team on hand every step of the way – from investment to renovation to finding tenants. We can even take care of cleaning and utilities. Due to the increasingly competitive nature of the rental market, potential tenants expect the best from their new home – and our selection of 5* properties, all close to major cities are just that. To find out more about the investment deals we have available, click here, or alternatively, get in touch on 0800 500 3015.