Scottish Millennial homeowners recommend renters think carefully about buying property

A combination of falling house prices, high costs of home ownership and growing recognition of the benefits of renting has led to almost three quarters (72 per cent) of Millennials identifying better investments than property.

Over half (53 per cent) would describe investing in property where they live over the next five years as high risk and 17 per cent believe cryptocurrencies such as Bitcoin represent a sounder investment.

The research also revealed that:

The findings have been unveiled in research of over 3,000 UK Millennials (223 in Scotland) by Get Living, the UK’s pioneer of build-to-rent homes and best known for East Village, the former London 2012 Athletes Village. Get Living is currently awaiting planning permission for a £200m investment to build over 700 homes for rent and a high-quality public realm on Glasgow’s High Street.

The multiple benefits of renting came through loud and clear, with 92 per cent citing the flexibility to relocate, ability to invest savings in other ways and the freedom to live in a nicer property as the main advantages over home ownership. When selecting a location to live in, more than half (53 per cent) said transport links were the most important factor, followed by levels of crime and personal security (43 per cent) and job opportunities in the local area (39 per cent).

Neil Young, CEO of Get Living, said: “These results provide an insight into a generation in the vanguard of the new on-demand subscription society where it’s increasingly common to rent, rather than buy, with the likes of Netflix, Spotify and Uber leading the way and now homes set to follow.

“What we’ve found in this report is that ’Generation Rent’ are cautious when it comes to property investment, are optimistic for the future and value the flexibility that renting offers. These shifts can’t be ignored. It’s time the property sector grew up too and changes the way homes are built, managed and experienced. For us that means we need to continue to make renting a simpler, fairer and positive experience for people in Scotland and the rest of the UK.

“In our first five years we’ve ignored the preconceptions around Millennials. We’ve found this generation are responsible renters, so we scrapped the standard six-week security deposit. They want to feel secure in their home, so we offered longer tenancies. They need flexibility, so we have a break clause after six months. They want transparency, so we’ve never charged fees. They’re a generation that’s savvy, safety-conscious and always connected.”

This research follows a recent report by the Resolution Foundation, which called for the Government to implement overhauling reforms for the PRS sector to help support the 40 per cent of Millennials who will still be renting into their 40s by improving security of tenure with longer tenancies, rent stabilisation, and an overhaul of the benefits system.

In 2013, for the first time, private renters in the UK overtook owner-occupiers aged 25-34. Accompanying this trend has been the arrival of the `build-to-rent’ sector, offering high standards of design and placemaking combined with enhanced resident services.

To see the report ‘Millennial Living in 2018: Insights for the UK’s ‘build-to-rent’ sector’, visit: www.getliving.com