What does the future hold for Generation Rent?

What does the future hold for Generation Rent?

Average house prices in the UK have been rising constantly, with figures showing that since 1997, prices have gone up 173%. As incomes have not risen, most of today’s 25 to 34 year-olds who are looking to buy a property cannot afford to, even with significant deposits and low expectations. The number of adults in this age bracket who own their own home are falling, and recent government initiatives to solve these problems have done nothing other than push prices even further out of reach.

Image Credit

What about renting?

If you are part of the generation who cannot buy their own home, what are your options?

Renting a home can be expensive, insecure and you are left with nothing to show for it. According to The Independent, renting in Surrey will set you back around £2.5 million in your lifetime, which is more than twice the price of buying an average 3 bed semi in a decent area.

Rent prices are also rising steadily, and depending on where you live, can set you back approximately £1,000 a month, or more if you live in London. To make matters worse, the current political situation is forcing landlords to leave buy-to-let schemes, meaning a reduced amount of rental properties are available, pushing prices even higher.

Image Credit

Are there any positives?

Although that makes the future look bleak for renters, there are some positive points to remember.

Many landlords use property management services to help manage their properties. For property management Cheltenham is well-served, and companies like Complete Property Group (https://www.completepropertygroup.co.uk/) can provide a reliable service to landlords and renters. If there are any issues with disrepair, tenants are able to go to the property management company, who will arrange improvements together with the landlord.

If you want to move house, you do not have to worry about selling a property in today’s market, and moving costs are significantly lower than if you owned your own house. As a tenant, you have the luxury of being flexible with area and you can choose a property that is furnished, again lowering costs.

So although it may seem as though renters have a raw deal, there are some positives to being a tenant, leaving you free to make flexible choices and choose to live in the house of your dreams.