One of the biggest trends transforming the British property landscape today is the rise of ‘Generation Rent’ within both the younger and older generation.
The most recent MRI Software research (in which they surveyed 144 senior property experts from a range of organisations including investors, owners, developers, consultants, contractors, property managers etc– asking questions covering economics, politics, demographics and technology) shows that city and town centres are where ‘Generation Rent’ – the Gen Z and Millennial renters want to live.
91% of the top executives and managers in the property sector surveyed by MRI say ‘Generation Rent’ prefer to live in town and city centres, so they can have easy access to certain amenities – such as gyms, cafes and bars, shops and services. Additionally, a recent Knight Frank report revealed that more than 10% of tenants say renting enables them to live in an area they could not otherwise afford.
According to the MRI survey:
82% of say projects to redevelop former retail premises to create mixed-use properties, including residential, will be a lucrative opportunity over the next 12-18 months
72% see residential development former retail premises as the route to giving the British High Street “a new lease of life”
90% say residential rentals in UK town and city centres will become increasingly important for property owners
Another factor which is boosting the growth in the rental market and which could lead to it outpacing homeownership over the next decade, is older generations looking to sell their properties and rent, according to analysts.
The CfAB recently reported that not only had 200,000 older adults joined the rental market in the past four years, but “a growing number of older homeowners are choosing to sell up and rent in retirement”. Additionally, the CfAB stated that the biggest growth in renting properties is currently in the 55 to 64 age group.