Generation Rent – Why Are So Many Millennials Choosing To Rent?
Home ownership may have been the goal for the generations who went before, but for the millennials, renting is now king. So, what happened? Why the sudden change of heart from wanting to own your own property to being perfectly happy with rented accommodation? Let’s take a look at some of the most popular answers given by ‘Generation Rent’ when they were asked why they find renting their living space so appealing.
Buying is just too expensive
For those in their late twenties and early thirties, the prospect of buying a house or flat is pretty daunting these days. Affordability is a huge issue. So much so that around 40% of millennials say that it is their primary reason for choosing to rent.
While some will argue that paying rent is effectively dead money, for some there simply isn’t a lot of choice. When it comes to making a decision between building up some equity in a pile of bricks and putting the heating on or buying food, which would you choose?
No DIY, no problems
Another popular reason is the fact that renting gives the tenant the opportunity to make a quick call to fix a problem whenever something goes awry. Blocked toilets, faulty boilers, and tired old washing machines can all be sorted without any expense or effort.
These things are just not your concern when you’re renting. So, for millennials who are short on time and cash, it’s easy to see why this is a plus over buying their own home.
Move with the times
Around the age category that millennials fall into, image is everything. By choosing to rent instead of buying, they are effectively free to come and go as they please, meaning that when one part of town becomes trendy they can up sticks and change postcodes at the drop of a hat.
For those looking to be at the cutting edge of a city such as London, renting really is the only option. Unless, of course, you happen to have access to mummy and daddy’s offshore bank account, that is.
Another reason regularly given is that those of the millennial generation would rather steer clear of commitment for now. Some may say that it is because they are unsure of the area, while others will simply tell you that they do not want the weight of a mortgage round their neck just yet. Whatever the reason, renting gives those with commitment cold feet the option to avoid feeling tied down.
We can’t buy even though we want to
The last category is one that has been growing since the financial problems hit the lending market back in 2007. Many millennials simply cannot borrow the money that they need in order to buy their own home. Gone are the days of mortgages being handed out willy-nilly.
Nowadays, getting a mortgage approved is reserved for the few rather than the many. Unless you are lucky enough to have a hefty deposit stashed away and you earn a fairly good wage every month, the chances are good that you’ll struggle to get the finance that you’ll need to make the biggest purchase of your life.
For more information why not read our Guide To Buy To Let Investments