News
Millennials choose to rent as don't want the burden of homeownership
Monday 24th April 2017
A recent survey of almost 1,400 tenants in London suggests that while many people do aspire to own their own home, others are more than happy living in private rented accommodation.
More than half of the respondents could be classified as lifestyle tenants, with almost a quarter of all tenants (23.82%) stating that they chose to rent because it suited their lifestyle, or they didn't want a mortgage. While nearly a third (31.41%) said they chose to rent because it enabled them to live in an area nicer than the one in which they could afford to buy.
What is more, a third of respondents (33.8%) stated they were only prepared to commit 20-30% of their monthly income towards housing, while a further 11.8% said they would only commit up to 20%.
Marc Von Grundherr, director at Benham & Reeves Lettings said "I think that labelling 'Millennials' as 'Generation Rent', the older generations are prescribing their own values onto the younger one. Whereas Baby Boomers and Generation X craved the stability and financial security of home ownership, today's young professionals see things differently."
"Many dream of living and working abroad and don't want the burden of a home. Others would rather have extra spending power rather than sacrifice for a deposit. What is very clear from this survey is that a significant number of tenants are in rented accommodation not because they can't afford to buy, but because they choose not to" he continued.