According to the study of over 3000 millennials by build-to-rent experts, Get Living, 74% believe there are better investments to be made than property. Highly fluctuating cryptocurrencies, such as Bitcoin, are seen as a better investment by 21% of 21-35 year-olds. The research also found that 37% of those homeowners complained that the value of their property dropped in first 12 months, 57% underestimated the cost of buying their first home and 45% of homeowners said their monthly costs are much more than if they are renting.
The report ‘Millennial Living in 2018: Insights for the UK ‘build-to-rent’ sector’ reveals caution around property investment, support for renting and optimism around income growth.
The advantages of renting are starting to ring loud and clear, with 9 in 10 Millennials seeing the benefits, and with the flexibility to relocate being the most valued benefit to renting. Half of homeowners (49%) admitted they lived in a more convenient location when renting, with homeowners paying on average two thirds more on commuting each year (soaring from £638 for renters to £1,016 for homeowners).
Millennials are also confident in their futures, expecting their income to almost double over the next five years (expected increase of 90%). In London, optimism is even greater, with Millennials expecting a 119% rise in income by 2023.
Neil Young, CEO of Get Living, said: “These results provide an insight into a generation in the vanguard of the new on-demand subscription society where it’s increasingly common to rent, rather than buy, with the likes of Netflix, Spotify and Uber leading the way and now homes set to follow.
What we’ve found in this report is that ’Generation Rent’ are cautious when it comes to property investment, are optimistic for the future and value the flexibility that renting offers. These shifts can’t be ignored. It’s time the property sector grew up too and changes the way homes are built, managed and experienced. For us that means we need to continue to make renting a simpler, fairer and positive experience – not just in London but across the UK.
In our first five years we’ve ignored the preconceptions around Millennials. We’ve found this generation are responsible renters, so we scrapped the standard six-week security deposit. They want to feel secure in their home, so we offered longer tenancies. They need flexibility, so we have a break clause after six months. They want transparency, so we’ve never charged fees. They’re a generation that’s savvy, safety-conscious and always connected. They don’t just eat avocados.”
