Generation Rent

All I want when I grow up? A home of my own! Or are we officially ‘generation rent’?

From a young age, we are flooded with the idea that buying a house means you have reached the ultimate level of sophistication, maturity and independence. Data from a recent survey from Share to Buy shows that getting on the property ladder when they grow up is a priority for under 10s in the UK, with three quarters of kids confirming they would like to purchase their own home when they’re older.

This concept has been challenged recently, following the patronising advice from millionaire Tim Gurner and Location, Location, Location’s Kirstie Allsop, who told millennials: “if you want a house, stop buying avocado toast” and “all you need to do is give up your EasyJet, coffee, gym, Netflix lifestyle” (Gurner and Allsop respectively).

UK women’s magazine, Cosmopolitan, has retorted with an article claiming that “we’re generation rent and loving it”, gathering the testimonials of women never buying a house. In true Carrie Bradshaw style, I couldn’t help but wonder… if this is in fact… true.

Let’s look at the facts. In one of our recent blogs “Over 30s Club” we explore the realities of buying a house in the UK. Whilst buying a house might be an early dream for the under 10s (!), according to Halifax, the UK’s biggest mortgage lender, the national average for a first home purchase has risen to 32 in 2021 (from 29 in 2011), and was above 30 for every British region.

The sad reality – the average house price in the UK is £254,630, which would require a yearly salary of £45,664 (trust me, I’ve asked our mortgage advisers at go2mortgages). So, when the average salary for women aged 22-29 is £25,112, home ownership seems out of reach for normal people with normal jobs. P.S These averages exclude London.

At risk of sounding like a total Debbie Downer, the UK averages plus the current climate don’t seem to paint a very promising picture for aspiring home owners.

HOWEVER, if buying a house is on your bucket list (pre or post 30), then there are things you can do to improve your profile as a prospective buyer. Check out our blog for three tips for first time buyers here. It’s not all complete doom and gloom.

As a generation we are re-writing societies expectations in many ways. Gender expectations are being redefined, women are choosing not to have kids, families are made out of the traditional structures. So in this respect, perhaps the under 10s who were asked about when they wanted to buy their first house, were growing up in a more narrow-minded society.

There is no shame in buying a house post 30 years old, if that’s what you want to do.

There is no shame in house-hopping, if that suits your lifestyle.

In the spirit of March 2022 and breaking down the boundaries of social constructs with the #BreaktheBias International Women’s Day movement – instead of rating people’s successes on their credit rating i’m going to list the advantages of both renting and owning a home. Pick your own winner.

Renting

Embracing the freedom and joy renting can bring.

1. As a result of the coronavirus pandemic, rent has fallen by approximately 15% in lots of British cities, so the prospect of renting has become much more appealing.
2. Whilst you can make any space feel like ‘home’ with pretty plants and rugs, if you get bored of the space, you can pack up and move on. Plus, you can experiment with different property types.
3. Go with the flow. Renting allows you to go where life and work takes you. If you need to bounce between cities to suit your lifestyle, work or relationship status, then you can do so with ease.
4. Ability to invest deposit money into other areas of your life. For example, a business, self-development, travel and experiences. This money will bring a return on investment in way that buying a house never could.
5. Avoid unplanned costs such as broken boilers, roof leaks and wall cracks.

Owning your own property

Championing the stability and independence buying a home can bring.

1. Create the home environment you want. No restrictions of style from the landlord. You have the freedom to make any changes you want, and you can gain from the home improvements.
2. Build up equity. Owning your own home can make you money. These assets can be used for further (and different) investments, as well as fund retirements etc. Especially if you have developed your property in any way, the financial gains can be advantageous.
3. Plant your roots. With ‘working from home’ becoming more of a norm, people have the opportunity to live physically further away from offices, allowing them to settle down in areas with more space, privacy and other desired luxuries.
4. Reduce your living costs with more predictable monthly payments fixed in. You can build a healthy credit rating and it can also provide tax advantages down the line too.
5. More often than not, monthly mortgage repayments are a lot cheaper than rent payments. Meaning that, over time, it’s cheaper than renting.

At risk of sounding philosophical – Home really is the people you surround yourself with, rather than the building itself. But if you would like your home to be in a building that you own, please reach out to one of our expert mortgage brokers at go2mortgages on 01242 237866 or liam@go2-mortgages.co.uk. www.go2-mortgages.co.uk

Or if renting floats your boat and you’re looking for a new space to make your own, Move Sales & Lettings and Hume Estate Agents come highly recommended by us for prospects looking in Gloucestershire and London.