Why Generation Rent are more satisfied than ever in the PRS

 

Happy tenants mean happy landlords, and it seems today’s renters are more content than ever, with home ownership aspirations dwindling.

It is widely known that people are renting later in life before buying a property, while growing numbers are dismissing the property ladder altogether, and the number of people renting is expected to surpass the amount of homeowners by 2039.

However, rather than being forced into the position because of rising house prices, a new study by Landbay has revealed that three quarters of respondents who rent are happy to do so – and a third of those renters have said that they would happily choose to rent for the rest of their lives.

Standards continue to improve

Far from the image of disgruntled tenants being ripped off by rogue landlords while living in substandard accommodation, today’s private rental sector is very different. Councils are increasingly cracking down on those few landlords who break the rules, while new minimum standards and licensing rules for houses in multiple occupation (HMOs) has encouraged many landlords to up their game. The result is a better experience for the majority of tenants, who as a result choose to rent in their current properties for longer.

Aside from improving living standards in the private rented sector, today’s tenants say they benefit from the freedom and flexibility that comes with renting rather than owning, including not having to take responsibility for maintenance costs such as fixing broken boilers or leaky radiators. Renters also avoid the added financial burdens that come with homeownership such as stamp duty, solicitors fees and estate agents fees, which has been further enhanced since letting agent fees were banned earlier this year.

Affordable rental options

Even those renters who do intend to become homeowners are apparently in no rush to do so. According to the survey, the average person will wait just over four years to buy their first home.

Age also plays a part, with 64% of over-55s who rent saying they wanted to continue to do so for the rest of their lives, while a third of 35-54-year-olds said the same.

While the cost of renting can be high, rent in the UK is generally considered “affordable”, with an average 28% of peoples’ wages being spent on rent, according to research from Imovirtual. To be deemed unaffordable, the level would need to be 30% of wages spent on rent.

The build-to-rent sector is currently booming, which has further improved the situation for many renters. These properties tend to be slightly more expensive than a standard buy-to-let, but come with a host of amenities aimed at long-term renters such as concierge services, shared facilities such as gyms and workspaces, and communal indoor and outdoor areas. All of these factors create a sense of community which in the past might have been lacking in a rental lifestyle, making it a more appealing choice for many.

As the private rented sector becomes more competitive, offering the most attractive rental accommodation is hugely important for successful property investors. Take a look at our investments page to see some of the opportunities currently on offer for investors.

Highgrove Mews

High Net Yield Freehold Houses

  • Commutable to London (27 mins to central Paddington station)
  • Rental demand extremely strong with large industry presence in Reading
  • Freehold with 4% net yield

£284,955 - £457,000

St Petersgate – Stockport Manchester

New Launch - Stockport Manchester, apartments from £160,000

  • Discounted launch prices from £160,000
  • Excellent transport links with 3 trains per hour to London Euston and only 9 mins journey to Manchester Piccadilly
  • Experienced development team

Assured Rent Housing Association Leases

Assured Rent Housing Association Leases

  • Assured rent & no rental voids
  • Tenant damage cover & newly refurbished inline with requirements of a corporate sitting tenant
  • Free property and lettings management

From £62,000

Emerging Birmingham Commuter Town With Properties From Just £104,000

The emerging Birmingham commuter town where properties are selling in an average of just 24 days

  • A collection of 62 two bedroom apartments and 28 one bedroom apartments.
  • DE14 is one of the fastest selling postcodes in the West Midlands.
  • 23 minute train journey into Birmingham New Street Station.

Properties from £104,000

Mill, Stockport

The Northwest's emerging property hotspot

  • Discounted off-plan 2-bed prices from £162,000
  • Completion date - Q4 2021
  • Rental yields - 6% plus

Discounted off-plan 2-bed prices from £162,000

South Central – Birmingham City Centre Apartments

Highly anticipated 28 storey launch in Birmingham City Centre with an impressive roof garden and communal facilities.

  • 154 units across 28 storeys
  • Residential multi-media community room, gym, roof garden and sky cinema
  • Excellent future connectivity via the metro system to other key transport hubs and locations around the city

from £205,800

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