With Generation Rent continuing to live up to its name, the rental sector, including build-to-rent, needs to keep up with demand.
For a long time, renting was seen as a forced living situation. However, nowadays it’s becoming more popular as a lifestyle choice, especially among millennials.
Recent data revealed there has been a 10% fall in young adults owning property in the UK over the last 10 years, but people aged 65 and over are also renting now more than ever, showing the need for more supply within the rental market.
Continued demand for rentals
It’s important to remember owning property isn’t a goal for everyone, so renting will still remain popular even as Generation Rent gets older. A recent Property Reporter article stated that more than 50% of adults under 40 years old are expected to be renting privately-owned accommodation by 2025.
Research from Resolution Foundation also found that up to one third of young adults will never buy a home. For many, renting gives more flexibility and is less of a liability than buying a home, and in some regions of the UK, it’s cheaper to rent than buy in terms of monthly costs.
Build-to-rent sector is key
Purpose-built rental accommodation can help meet the increasing demand for rental properties as more Britons choose to rent. According to Property Reporter, there are about 131,855 build-to-rent homes being planned, under construction, or built in the UK. Additionally, it’s estimated that 250,000 will be built by 2030. If more people invest in these types of new builds, the figures could end up being even higher.
Build-to-rent properties are especially appealing for Generation Rent because of the amenities they can offer like pools, gyms, communal areas, and services. These types of new builds are ideal for those who prioritise a higher standard of accommodation over stepping onto the property ladder as it allows most renters to have access to facilities they wouldn’t normally have in a traditional home.
With a growing demand for high-quality rental properties, the build-to-rent market is expected to be a worthwhile investment even as Generation Rent becomes older.
