Millennials prefer rented accommodation in London
Earlier generations preferred to own property, But majority of millennials are going for rented accommodation. Buying a house or a flat in London property market has become more expensive for average salaried people. Since majority of millennials prefer rented accommodation, the demand is increasing the rentals. Rents in London are soaring over eight percent.
The majority of millennials are turned out to be 'Generation Rent' as they prefer rented accommodation over buying a house. For many people in the age bracket of 25-35, the prospects of buying a house or flat have become a daunting task and very expensive these days. The affordability and comfort are the prime reasons for choosing rented accommodation for millennials.
Over 40 percent of millennials choose rented accommodation, while some opine that paying rent is dead money, according to Aspen Woolf. Millennials, who're short on time and money, naturally go for rented accommodation. Majority of millennials prefer to be tenants as it gives them freedom from several maintenance problems. Tenants have opportunity to call the owners for fixing problems related to maintenance works such as blocked toilets, faulty boilers and washing machines.
According to HomeLet, there's increasing pressure on the UK housing sector. HomeLet executes 350,000 tenancy checks every year for landlords. HomeLet says despite £140 million fund support from the British government sanctioned by David Cameron, the pressure seems to be continuing. The fund is aimed at replacing sink estates to enhance more accommodation in cities such as London and Brighton. About 30 percent of housing in Brighton is in the hands of private sector.
Rents in the UK rose 4.9 percent on an average in 2015. Brighton became the second city to witness rents surpassing £1,000 a month. Nationally, the UK rents rose about five percent in 2015 yielding an average rent of £739 per month. Rents in London rose eight percent to £1,596 a month, as per a report by The Guardian. The outskirts on the cities are witnessing surge in rentals for the first time in several years.
However, some flats are coming at a bargain, but with unconventional features. Some landlords are making three rooms within a room by cramming all features within the space. A small kitchen platform and shower are arranged just beside the bed and offering it for rent.
A recent online advertisement for a studio flat mentions that rent is just £95 a week. In general, it looks better rent option for a bedroom, kitchen and bathroom. But in reality, it's one-third of a space in a room. The online advertisement for room rent specifically reads a spacious single studio with kitchenette and own shower, pine furniture and double bed. But, the owner conveniently made a single room into three separate spaces, according to a report published in Independent.
Millennials also find it easier to move around in the city regardless of any timing or responsibility. Tenants are effectively free birds to come and go whatever part of the city appeals them more. They can change the postcodes at the drop of a hat.
More particularly the prime locations in London, rented accommodation is the only option available for millennials. Some of the millennials feel buying a house is like having mortgage weight around their neck. Some feel unsure of the locality where property is located, so they don't feel buying a house or flat in that location.