The Top 5 Property Types That Appeal to Young Professionals in the UK
When thinking about the property types you should invest in, ROI is not the only consideration to take into account. As a matter of fact, learning more about the major groups of renters in the UK is definitely a step you should not take lightly.
In this article we’ll be covering the emerging “young professionals” renters and the types of properties they tend to favour and why.
Read on to see if this is the direction you’d like to take on your property investment journey. Here are the top 5 property types for young professionals in the UK:
1) Shared Houses/ Serviced apartments/ House shares
Shared Houses:
There’s been a recent surge in the popularity of shared houses in the UK, especially among young professionals. And it’s no wonder why – with the high cost of living and rental demand through the roof, shared houses offer a more affordable and flexible option for young tenants. Plus, with more and more people moving to cities for work, shared houses provide a great way to meet new people and make friends.
Serviced apartments:
Serviced apartments are ideal for those who need occasional short-term accommodation when coming into town for work. They’re often rented by individual rooms, which means renters won’t have to worry about sharing their home with someone they don’t know very well (or at all)
House shares:
House shares are one of the popular property types amongst young professionals looking for roommates. It’s worth noting that house shares come in many different varieties. Some house share arrangements are live-in with one landlord and just one set of bills to pay, while others are a bit more complicated; some require that the person renting only pays a part of the rent each month or is required to clean up after themselves. Whatever type it may be, just remember that house shares can be an excellent opportunity for young professionals looking for affordable housing options!
2) Renting an Apartment
The rental demand for high-quality flats is at an all-time high, especially in large cities like London. Many young professionals are looking for new builds that are close to public transportation and have modern amenities. If you want to become a buy-to-let landlord, it’s important to have an overview of the rental market. Also to understand how to buy a rental property that will deliver good returns. Buy-to-let homes offer a steady cash flow that most homeowners want as well as the potential for future capital gains. If you’d like to know more about buying a rental property, this is the article for you.
3) Buying a House
When it comes to UK property, young professionals tend to go for a few different options. One popular option is to buy a terraced house. These houses are often found in city centres and are perfect for young people who want to be close to the action. Another option is a detached property. These properties are usually larger and come with more land, making them ideal for young families. Also, when taking the current post-pandemic trends, detached houses have surged in popularity significantly.
Considering owning a property is not an option for some young professionals, they choose to rent out a house. Renting out a house allows them to live in an area they might not otherwise be able to afford. Another reason, these young tenets prefer to rent is It also gives them flexibility if they need to move again. For example, if they need more space or wish to start a family. Renting out a home means that they don’t have any long-term commitments. This is why this can be a great property investment option for you. In addition, these tenants also tend to be more reliable. You’ll simply find a new tenant for your house and repeat the process every once in a while.
Alternatively, if you’re looking for something cheaper, these housing options tend to cost less than, also very popular, new builds. This article might help you get clear on which option is better for your property investment strategy.
4) Living with Parents
A recent study showed that 1 in 3 young adults in the UK live with their parents. This is due to a number of factors, including the high cost of living and student debt. And it’s not just millennials – the trend of ‘boomerang kids’ is growing among Gen Z as well.
Many parents don’t charge rent to their adult children. But even if they do, it’s often much cheaper than renting on your own. The average UK rent for a studio flat is £879 per month, so even if they are paying less than half the price of the parent’s house, they’d still be saving money by living there. This is obviously not a great piece of information for property investors looking to monetize on this particular age group. Although it’s important to be aware of the trends and both up and downsides of a particular investment type.
5) Co-living
Co-living is a community living concept that has gained popularity in recent years, especially among young professionals. These spaces are usually shared apartments or houses where residents have their own private bedrooms but share common areas such as the kitchen, living room, and bathroom.
Co-living flats:
Co-living flats could be the perfect solution for professionals who want their own private space but want to enjoy a community feel too. These living spaces provide all the needs from bedding and towels to wifi, kitchen utensils and food staples. Residents have 24/7 access to communal areas. Such as lounges, cafes and dining rooms so they can mingle as much or as little as they like.
Co-working spaces:
These are similar to co-living spaces in that they often offer fully furnished communal offices and meeting rooms. However, they differ because of their focus on working rather than living. They also often cater more to business owners with larger budgets.
Student housing:
Unlike other forms of property types for young professionals, student housing is typically not advertised to all ages of people who want to live there but instead only for those between 18-25. Those looking for accommodation outside of ther university, student housing can be a great option for them. If you’re interested in this vastly popular investment type, head over to this article to see the Best Student Accommodation Investment Areas in 2022.
Conclusion
If you’re looking to capitalize on the “young professionals” looking to rent property in the UK, you have a few different options. The most popular property types among young professionals is a flat, followed by a house share. If you’re interested in investing into something a bit more luxurious, you can also opt for a serviced apartment or a penthouse. Whichever type of property you choose, make sure you do your research and work with a reputable agent to find the perfect property type for you.