Changing lifestyles, work patterns and urbanisation point towards an unprecedented interest and investment in rented accommodation in Europe’s leading cities, says a new report.
FTI Consulting and law firm CMS spoke to 6,500 people living in Manchester, Glasgow and London, as well as Amsterdam, Berlin and Paris, to establish their preferences when it comes to their living environment.
It found 72% of iGens (the new generation of workers born between 1995 and 2012), and 56% of all consumers say home ownership is less important. 61% of consumers say they would consider renting when they retire.
London-based estate and letting agent Hamptons International recently reported that the number of older renters has risen by 61% since 2012, with around a third of these being retirees.
Hamptons International says that many retirees are choosing to swap homeownership to beat high levels of stamp duty, free up cash to help family members onto the property ladder and turn their home into a source of income.
Those findings are supported by the most recent English Housing Survey (EHS), which reported that the proportion of private renters aged 55-64 was 9% in 2017-18, up from 5% ten years previously. The previous year’s EHS documented a 1.8 million rise in the number of family tenants over a decade.
More older people renting in York
Anya Mathewson, Managing Director of Letters, said the figures are also reflected in York. She added: “The demographics are slowly changing so our spread of tenants is encompassing all ages. We’ve certainly seen an increase in retired people deciding to rent.”
Glenn Seddington, managing director of utilities management service Tenant Shop says the fact more families and older individuals are renting privately represents an opportunity for agents and landlords.
“More people from all demographics are choosing to live in the Private Rented Sector for the long-term. This is due to a number of reasons, including the flexibility and affordability it offers,” he said.
“This development has provided agents and landlords with the chance to work with new age groups and those that cater to older tenants and family renters within their service offering can reap the benefits.”
Tenants’ priorties when choosing a home
The FTI report found superfast internet and strong WiFi are the main factors in rental decisions for consumers across all age ranges and cities. Other key factors include:
- Safety and security (65%)
- Good transport links (58%)
- Spacious living room (54%)
- Outdoor space (51%)
- Spacious main bedroom (49%)