According to new research published in Property Reporter this has led to changing attitudes among young people. Whereas previous generations were more focussed on owning their own home, almost a quarter of all Brits did not record positive feelings towards the experience or idea of homeownership.
Of those who already own a home of their own, many younger people are reportedly dissatisfied with the experience. One in 10 millennial and Generation Z homeowners say they feel tied down by it, with men more likely to express this sentiment than women.
However, this should not be taken as bad news for the property market – after all, a full three quarters of people are still positive about the idea of homeownership. This includes 46% of Generation Z who say they are either saving towards or planning for the purchase of their own home. This positivity is aided by the one in 10 people aged 65 or above who have sold their homes and exited the property ladder, thereby freeing up homes for others to buy.
Some areas of the UK are keener on homeownership than others; for instance, 59% of people surveyed in Glasgow are homeowners and over half of all Glaswegians report positive sentiments, making it the most property-positive city in the UK. Other cities such as Edinburgh and Brighton are not far behind.
Overall, the property market looks strong and it seems that people retain faith in it. Furthermore, the outlook for the future also looks good.
Buy to let investors can also take heart from recent good news from the HomeLet Rental Index showing that UK rental growth reached 2.3% year-on-year to July 2019. This is significant growth, and the average UK rent has reached as high as £959 pcm (£794 pcm when London is excluded).
These rental figures are likely to be even higher when they are next measured due to the impact of the tenant fee ban. Reports from the Association of Residential Letting Agents (ARLA) revealed that 55% of landlords increased rents in June compared to the 22% who did so in May. This is likely in response to the ban on tenant fees which has seen many agents pass costs onto landlords to make up the shortfall. In turn, they seem to have passed that cost onto tenants.
With positive sentiment spreading through the property market, in particular when it comes to rents, this is a great time to invest in UK buy to let. If you are looking for your next investment, please get in touch today