We have published several blogs previously about the rise of renting, particularly “generation rent” millennials who were stuck in a never ending spiral, destined to never own their properties. It looks as though now, London is the best place for it.
With the private sector looking to be worth around £70bn by 2021, London currently accounts for around 65% of the rental market, according to research. Whilst affordability remains a top concern, around seven in ten renters expect to be living in the rented sector in three years’ time.
The term “build to rent” refers to housing that is built specifically for rental purposes, due to an increased demand from people who are struggling to get their feet on the housing ladder. Building more property to meet the demands of this market seems a sensible solution – and it seems that London is prime territory due to sky high rental prices.
Purpose-built rental homes may seem like another housing utopia, or, it could actually be the solution to filling a huge demand. If you ask many property experts, they will tell you that after many years of unaffordability that millennials have actually abandoned the idea of ever owning their own homes, in favour of living a more flexible lifestyle as a way of being faster moving and not tied down by mortgages.
But is this really true? According to a building society, which carried out a number of focus groups on young people, millennials appear to be as frustrated as anyone. Under-25s stated that homeownership was one of their three main aspirations. It seems that homeownership is still deeply ingrained in the British psyche and that millennials care just as much about it as their parents and grandparents before them.
Meanwhile, it looks as though project build to rent is still firmly in hand. Legal and General announced that its build to rent fund had raised another £170 million – and London is the place where everyone wants to build, invest and live.
If you would like any further information, or you would like some advice relating to your own property portfolio, contact the Real Estate team at DMH Stallard, who would be happy to help.