In the UK and in many other countries across the world there is an entire generation who might never know home ownership and aren’t particularly phased by this notion.
Those who fall into the ‘Millennials’ bracket happily rent most things in their lives from cars to designer clothes, music to furniture, why would renting a property be any different?
In their 20’s and 30’s, these individuals will often have well-established careers and regular income. For the most part, they appreciate enjoying their income as it comes in and living well rather than squirrelling their money away and saving to purchase an asset that seems very out of reach.
Good news for property investors?
With little intention of saving to purchase a property, put off by the costs of buying and having to compromise their living standards in order to save enough for a deposit and the associated costs of buying a property, the demand for rental property in the UK continues to grow.
It has been reported that millennials spend almost 50% of their income on their rented accommodation. A sizeable allocation of finances each month and one property investors can benefit from.
Affordability presents a barrier to entry for the younger generations; property prices have grown considerably and many can now only have their dreams of home ownership met when the ‘bank of mum and dad’ lends a helping hand.
Even with the governments continued attempts to boost homeownership amongst the younger generations, from eliminating stamp duty land tax to building as many homes as possible, the efforts have not had quite the desired effect. Data has shown that since 1993 the rate of home ownership has declined from 50% to merely 20% among those aged 20-29.
Whilst they might not be buying property they still require a place to live, seeking independence or following a career away from their family home these young professionals rent property.
Buying a stand-out rental property
The demand for rental property is steady in the UK, attracting the best tenants is often the key to a property’s success and subsequently your success as a landlord. What is it this generation of renters looks out for most when searching for their next home?
The newer the finish the more appealing a property tends to be, homes in excellent condition particularly those that are brand new not only often look far better but are also usually in full working order.
With such busy lives, young professionals do not have the time to deal with appliances not working or a leaky bathroom tap, everything should be in working order and well maintained.
As well as a property having a high-quality finish and fully working appliances many young professionals seek property that have a property management company looking after it. A management company means that the tenant does not have to speak with the landlord directly on any matters that might become contentious and also usually means any issues are fixed far quicker.
How can we help you?
Working with only reputable developers we advise our clients to purchase the very best rental property available to suit their unique investment requirements. The management and letting of these properties is also taken care of meaning our investors have to do very little once they’ve purchased the property.
We’d be delighted to discuss your plans for property investment further and look at how you can make the most of the high demand for rental property in the UK. Call us on +44 (0) 2039507939 or send us an email at info@thirlmeredeacon.com.
