Residential rental company, UNCLE, shares the results of its latest survey of UK residents, revealing their views on renting, how long they want and plan to rent for, as well as the views of renters around the world from the countries that rent the most.
How long do people plan to rent for?
Renting may be a stepping stone into buying a property or trying out a new area, but how long do people actually plan to rent for?
The most popular duration of time to rent is 1-2 years, with almost one third (30%) of UK residents planning to rent for this long. Nearly a quarter (23%) of respondents said they plan to rent for 3-4 years, and 1 in 10 (11%) are planning on renting for 5-6 years. The survey suggests that the majority of people tend to plan to rent for a shorter period of time, as just 2% say they intend to rent for 7-8 years, and 6% plan to rent for 9-10 years.
However, nearly a quarter (21%) of residents plan to always rent, with 15% of residents saying they like renting because it gives them the freedom to live wherever they want. Almost 1 in 5 (19%) boomers, those aged between 55-74, want to rent for as long as possible.
Is buying a home all it’s cracked up to be?
There’s lots of emphasis on buying your own home, especially to the younger generations, but saving up large chunks of money may not be possible nor something everyone wants to do, especially when the average property deposit is a staggering £57,000 for first-time buyers. So what does each generation think about owning a home?
Boomers seemingly do not want or feel the need to buy a house, with nearly 1 in 5 (17%) of the generation thinking there’s too much emphasis on being a homeowner.
The trend with this opinion grows steadily throughout the generations - 12% of both gen z (16-24-year-olds) and millennials (25-39-year-olds) agree that there is too much importance placed on owning a home, with 15% of gen x (40-54-year-olds) also agree. The trend also continues to grow throughout the generations in regards to renting for as long as possible.
Although gen z's want to rent for the shortest amount of time, with the average house deposit costing over £50k, it suggests that the generation may have to rent and save for longer than desired.
Countries around the world renting the most
Switzerland takes the top spot as the country around the world with the most renters. Almost two thirds (61%) of residents in the country rent in the private sector. With Swiss house prices rising by 2.5% in 2020, and rental prices rising just 1.1% in the same year, it appears that renting is more financially viable for Swiss residents than purchasing a property.
Germany has the second-highest percentage of residents renting in the private sector, with over half (54%) choosing to do so. An apartment in Berlin costs an average of €598,920 to buy, but monthly rent for the same apartment would cost €1,493. Recent research suggests that in only 35 out of 111 cities analysed across Germany is it cheaper to buy a property rather than rent.
Ryan Prince, founder of UNCLE, comments: “Home prices just hit an all-time high with the average property costing £249,000 requiring a deposit of £57,000. There are many people who aren’t able to afford to save up a large chunk of money or choose not to own for a range of reasons related to flexibility and the benefits of ‘living as a service’.
“Over the last year, the one lasting legacy of the pandemic is the abolition of the negative stereotypes around ‘working from home’. Given the flexibility and fluidity the new ways of working offer, renting allows you to move freely and not be tied down to one area. It makes remote working and renting a perfect pair.”
