Recent studies are indicating that the ‘Millennial’ generation are going to have an enormous impact on the UK housing market. There are recent figures which predict as high as one-third of Millennials will still be renting by the time they retire. The statistics show that it is very important that we don’t alienate these future home buyers from the property ladder.
Millennial Housing Preferences
Do Millennials enjoy living with their parents or are they forced into the situation? The greatest trend we are seeing is that more and more young adults are living with their parents, unless they have made the move to a different location to pursue a career. If you make the choice to move out of your parents home as a young adult then there are significant costs involved. There are also social and cultural taboos connected to living away from parents which Millennials may factor into their decisions.
Millennials do tend to move around if chasing a career, so if they are in a different city to their parents they will usually rent. Otherwise if they are working closeby they tend not to rent their own place but live with parents.
Rent or Buy?
To rent a house is usually preferred as it is more convenient and offers flexibility at a usually unpredictable time of life. Buying a home requires a large commitment not only in money but to stay in one location for a substantial period of time, which a career may not be able to guarantee.
Millennials like the freedom available in renting as they may wish to change jobs or location, but also then they can choose their preferred locations. Affordable homes which would generally be within reach to Millennials are often found on the outskirts of towns and cities or where there is limited infrastructure compared with rentable inner city locations.
Buying a house requires a long term commitment towards upkeep and mortgage repayments which most Millennials are not ready to commit to. This does not mean that all people have the same opinion this is just the majority of trending observations. There are people from the younger generations investing but it’s just at an older age than those who came the generation before.
What do First Time Buyers need to know?
The Previous Generation
Millennials and the way that society is moving as a whole is changing. With it this is changing the priorities of the majority. People today are much quicker to spend money on experiences or the latest gadgets, and are happy to pay a premium for convenience. Millennials usually have a different priority in comparison to their parents.
If you look at the buying trends of Millennials who are purchasing property they are tending to prefer serviced apartments. In town centres if a developer can offer properties for the working professional with all the amenities required then these are in strong demand.
Things to be aware of when buying and selling property.