May 31, 2017
Buying a home, especially for younger people, has traditionally been seen as a rite of passage and a way of making a statement that you have ‘made it’.
But that is now not always the case, with more and more of the so-called ‘millennial’ generation opting to rent and shun the buying market.
With renting, people tend to be more geographically mobile and, in an era of austerity, it is not uncommon for the younger generation to up sticks and move from one part of the country to another, or even onto the continent, from year to year in search of work.
Add to this the fact that house prices are now out of reach for the majority of those in their 20s and early 30s, and it is no surprise that more are turning to renting for their accommodation.
Indeed, as the Professional house buyers at Good Move rightly point out, while more than half of under-35s on low-to-middle incomes once owned their own home in 2000, the figure has now fallen to just a quarter.
The lack of affordable property in the UK has been a problem for some time and, having come out of the last recession a few years ago, it is open to debate as to whether things have improved much at all.
In rural areas people are being forced to look elsewhere as prices of the properties available are hiked up, and so renting becomes the only option with people on a modest salary nowhere near being able to afford a deposit let alone the mortgage repayments.
The government’s Help to Buy scheme, which is supposed to provide state-backed mortgages where first-time buyers only need a 5% deposit, is failing to help those on low to middle incomes.
It used to be that a period of three to five years might be required to save up for a deposit but that figure is now not even close for those on modest incomes.
But is this really an issue for millennials, with rented accommodation a decent alternative if you can find the right one?
There will always be unscrupulous landlords looking to rip people off but, keep your wits about you, and there is no reason why you should not find a decent place to live.
The world is changing at a rapid pace, with social media connecting us all like never before and it is inevitable that the way we live our lives will alter too.
Renting is no longer seen as the poor relation to house buying and means that families can save money on maintenance, most of which should be carried out by landlords.
While rent can be expensive, there should be savings to be made in the long run - especially on older properties that might be run down, and so renting is something that can be embraced.