Almost half of UK renters not looking to purchase property

Almost half of UK renters not looking to purchase property

Research by NatWest highlights the growth of ‘Generation Rent’, emphasising changing attitudes towards renting and home ownership in Britain.

Summary:

  • 48% of 22-30 year olds in the UK that don’t own a home are not currently looking to get onto the property ladder, as new research from NatWest marks the growth of ‘Generation Rent’
  • The largest proportion of respondents state that they currently rent property with their partner
  • Changing attitudes towards home ownership in Britain emphasise the need for quality rental property

Do more young people in Britain prefer to rent their homes than to own them?

New research by NatWest, a survey of 1,500 22-30 year old customers not in the owner occupied sector, has found that 48% are not currently looking to buy their own home, as opposed to just 17% that are actively looking.

It also gave an insight into current accommodation patterns. 40% of those surveyed rent with their partner, 29% either rent alone or at their parents’ home, and 8% rent with friends.

The data highlights the growth of ‘Generation Rent,’ the term used to describe the growing number of young people in the UK that don’t currently own property.

Of course, a large number of these renters would prefer to be on the property ladder, and the survey indicated that current house prices, which once again have recently seen year-on-year increases, are one of the barriers to entry for many.

But the long-held British ideal of owning one’s own home is increasingly becoming an outdated concept for many of today’s young people, with many pursuing a lifestyle that sees them move around much more frequently than their parents and grandparents.

An increasingly more mobile labour workforce, for example, means that 25% of 16-34 year olds now aim to have 12 jobs in their career, with more than 75% prepared to relocate to a new city to find work. Owning property, and being locked into a mortgage, would arguably restrict this movement. Furthermore, 30% of more affluent renters in the UK private rented sector are actively seeking a more transient lifestyle.

Collectively this highlights the importance of quality rental accommodation for this cross-section of the British population.

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