Ongoing rental hikes lead millennials to become a generation of ‘Property Drifters’
Almost a fifth (18%) of young people spend less than 12 months at any one address
78% believe the levels of rent they pay will delay the age they can get on the property ladder
Over half (51%) have considered moving countries to give themselves a better chance of getting their foot on the property ladder
New research from QualitySolicitors, a network of over 100 solicitor firms nationwide, reveals how the turbulent rental market is leading millennials to become a generation of ‘property drifters’ who regularly move property and are not in a position to buy.
The survey of 1,000 young people aged 18-34 years, highlights that almost a fifth (18%) are spending less than 12 months at any one address, with some clocking up to 30 different addresses between leaving the family home and purchasing their own home. It also reveals that over a fifth (21%) have had to move as a result of their landlord increasing their rent - 44% of which have done so in the past calendar year.
This constant drifting, coupled with soaring property prices is also hindering future plans for Millennials to become homeowners themselves:
- Nearly four fifths (78%) say the levels of rent they pay will delay them getting onto the property ladder
- Over half (51%) have considered moving countries to give themselves a better chance of getting their foot on the property ladder
- The vast majority (87%) say buying a property is unrealistic unless they get significant financial help
- More than one in ten (13%) have given up on the idea of buying a home entirely
- 63% believe that winning the lottery is the number one thing that will help them buy a property given the current market
Those who have not yet lost hope in buying their own property, have had to make compromises to help them save money. More than a third (36%) have moved back to their family home – over one in 10 (12%) having done so at least three times. One quarter have had to 'couch surf' with friends or family and more than two fifths (43%) admit to renting in an area they know they will never be able to afford to buy in.
Richard Carter, Conveyancing expert at QualitySolicitors comments: “Its clear that rent hikes and sky high property prices are seriously impacting young people’s chances of buying a home of their own. We are also finding that those who are lucky enough to be in a position to buy a property often don’t know where to start, which could delay the process even further. This is where we can help. At QualitySolicitors we’re committed to providing practical advice for anyone looking to buy their first home. We also offer free initial assessment, so would urge anyone who is unsure of anything about the process to give us a call for more information.”
Top ten things millennials say will help get them on the property ladder…
- Winning the lottery
- Inheriting money or a property when a loved one dies
- Getting significant financial help from a parent
- Buying with a friend of family member
- A property crash
- Moving away from the area they are renting in
- Moving with a wealthier partner
- Getting significant financial help from a grandparent
- Moving back to the family home to save money
- Moving in with other people to save rent
To help prepare millennials when they are in the position to buy their own home, QualitySolicitors has produced some downloadable tips available here: www.QualitySolicitors.com/conveyancing.
- Launched in 2010, QualitySolicitors is a group of law firms across the country working as part of the QualitySolicitors brand. Only one firm per local area is selected to become a QualitySolicitors partner. Customer feedback forms an integral part of the selection process.
- QualitySolicitors’ national network of lawyers consists of over 100 branches across England and Wales.
- QualitySolicitors lawyers are experts in their fields dealing with both consumer and SME legal matters. QualitySolicitors offers a personal, local service but with the assurance of a recognised national brand.
- QualitySolicitors’ website address is www.qualitysolicitors.com
- In 2011 QualitySolicitors secured equity investment from Palamon Capital Partners, a private equity house with a £700m fund.