Soaring property prices are causing more young people to believe that the future lies in renting.
Some three in four young people in Britain feel that it is highly unlikely they will ever afford to buy their own home and will rent for the rest of their lives.
An Ipsos MORI survey for Shelter and British Gas revealed that young people are finding it a lot harder to invest in their ‘forever home’ compared to their parents.
Although they want to put down roots and find a home in which to live in the long-term, they realise that this is unlikely to happen because they are renting.
Shelter chief executive Campbell Robb said the country is at the mercy of a housing crisis. He said that millions of people are facing a lifestyle of instability because of the current housing shortage.
He added that graduates were not taking jobs offered to them in London because they could not afford to live in the Capital.
Although commuting longer distances is another option, the cost of rent plus rail or tube travel could also put this out of reach of people on lower incomes or just starting out in a career.
Owning property has traditionally been seen as an investment for many Britons. Prices tend to increase at a faster rate than inflation and so it is seen as a good way to save money and accumulate capital. Some believe that Britain could become more like Germany where about 50 per cent of the population are tenants rather than owners.
Britain will need to make sure that there is a good supply of decent rental properties, particularly in popular areas such as London, the South-East and in large university cities including Oxford, Manchester and Bristol.
This could provide an opening for more professional landlords and property management companies to look after a growing rental market.
Regulations and rules regarding the rental sector may need to be looked at too. It is essential that any property management company keeps up-to-date with changes to the law and ensures that they comply with all relevant regulations. Many find that investing in specialist software can assist greatly in this regard.
Wisely chosen software can make sure that all records are kept up-to-date; bookings and appointments are scheduled; inspections are carried out; right to rent regulations are adhered to; and a proper inventory is managed for each property. This streamlines the administrative and back-office duties for landlords and management companies.