Is Generation Rent here forever?
The UK’s climbing house prices have always been a significant barrier for first-time buyers looking to get on the property ladder, with recent figures suggesting that half of Millennials will likely rent well into their forties, while almost a third of this demographic may never own their own home.
For many years, renting a property has typically been perceived as a ‘stepping stone’ – a temporary solution for those who will eventually buy their own property. However, prices have been on an upward trajectory for the best part of 10 years, and more recently, tenants have become content to rent property indefinitely, with less ambition towards buying.
In this interesting opinion piece published by Property Investor Today, Andy Foote, a director at property investment and development firm SevenCapital and an established property investor himself, makes points out, that on average, renting is almost £100 cheaper on a monthly basis than buying a property, even with a 10% deposit.
Although the end of the Stamp Duty Land Tax holiday could see property prices stabilise and a degree of affordability return to the market, he concludes it’s likely that Generation Rent will always remain in some way, shape or form.
We think he might have been even bolder.
Generation Rent is a growing trend with no signs of shrinking, as a growing proportion of the population no longer sees property ownership as a lifetime priority.
Do you agree?
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