More people are renting properties and the amount of time they are renting for is on the rise, particularly with young people. This is despite the benefits that come with total home ownership and that in the long run, buying a home can work out a lot cheaper for millennials and young families alike.
Research from the National Landlords’ Association shows that families, including families with children account for 48 per cent of the private rented sector, more than young singles – which were once believed to make up the majority of the rented property market. Renting has become attractive for a lot more people. There are numerous reasons as to why this may be the case but one thing for certain is that with young families, saving money can sometimes be an impossible task. With more people going through university, people already have student loans and do not want the added financial pressure of mortgaging and re-mortgaging when reasonably priced rental property is an option, especially in The North.
Young families always seem to be renting – one reason is that millennial wage growth is slow and student loan debt is growing fast. If you add this to the high quality of life that people expect and the desire to move from area to area, it is true that renting is a suitable option for most.
It is not only more people renting accommodation but an increase in the amount of time they are renting for. Lettings Negotiator at Propertynest April Dickinson says: “We have seen an increase in families taking out extended leases. It is rare for 6 or 12 month contracts to be signed as tenants usually hope to stay in the property for more than one year”.
The Manchester Evening News suggest rental property in the North demand is outstripping supply as rental homes are snapped sometimes with one hour.