Millennials have become one of the most active groups in the UK rental market, as more of this generation turn to renting in favour of purchasing their own home.
Figures published last year by PwC forecast that by 2025, more than half of those aged under 40 – predominantly those in the millennial age range – will be active in the rental market. It means this will be the largest group of renters in the UK.
The financial pressure of building a large enough deposit to secure a home of their own remains one of the most common reasons that millennials and younger people in general are now turning to the rental sector in larger numbers.
Furthermore, the flexibility that comes with renting instead of owning your own home is also a large attractor for younger generations, many of whom are reticent to be tied down to high levels of debt and long mortgages.
Overall, the fact that higher living costs than in years gone by are now impacting the ability of many younger people to save towards a deposit and still have an active social life and pay for monthly essentials has meant attitudes to renting are now shifting.
Indeed, figures published in PwC’s 2016 report showed that against previous generations, just 40 per cent of millennials are expected to own a home by age 40, rather than the more than 70 per cent of baby boomers who were able to achieve this goal.
Ultimately, changes in attitude to home ownership are now being witnessed across the UK, with the benefits of renting and the drawbacks of buying combining to ensure that more and more millennials are now open to the possibilities that renting provides.