Falling home ownership levels have revealed a changing attitude towards renting among younger generations.
According to figures from the LGA, home ownership in the UK has fallen to its lowest level in 30 years. Ownership rates among 25 year olds dropping from 46% to just 20% in the last two decades.
Many experts are pointing the finger at a lack of affordable housing available for first time buyers. However the results of a recent tenant survey conducted by Knight Frank found a different cause.
38% of under 35s and 49% of under 25’s stated that renting was a conscious decision that suited their lifestyle. Rather than settling down in an area, under 35’s prefer to have the freedom to move.
Renting is the “new normal”
In a study undertaken by the University of St Andrews in 2015, it was discovered that renting has become the “new normal for younger scots”.
The author of the report, Dr Kim McKee said “This research challenges much of our taken for granted understanding of people’s housing aspirations.
“It draws attention to the way in which changes in the wider economy have impacted upon the housing preferences of young people in particular, leading to a generational shift in attitudes.
“This is reinforced by housing statistics which highlight a continued decline in levels of home ownership in Scotland, and growing numbers of households living in the private rented sector.”
The PRS industry only looks to expand over the next three years. Many experts estimating investment to rise to £50 billion by 2020. This could trigger a movement in focus for investors, moving from medium-term capital to long-term income-generating assets.
