Luxury Rentals To Replace Ownership?
Whilst 'reports' can sometimes be fuelled by a PR initiative an interesting topic was posed earlier in the week suggesting that luxury renting would become the new home ownership for millennials.
The reason? The supposed dying dream of home ownership for many young people due to rising costs leading to an increase in alternative renting options.
Suggestions that the luxury rental accommodation market for young professionals has seen a huge growth in recent years but especially more recently.
In the last four years, online searches in the UK for ‘co-living’ rental opportunities have grown by almost 4,000%. This is bound to increase over the course of the not too distant future due to further investment into the sector.
Co-living – which is often via luxury, more bespoke accommodation – has accelerated as the dream of young people owning their own home has somewhat diminished. In the last 20 years, home ownership for middle earners aged 25-34 has dropped from 65% to a staggering 27%.
There is no doubt that the struggles of the UK housing market have been to the benefit of the luxury rental accommodation sector. With that in mind, there will of course be growing demand, including international interest, for an improved renting experience . Many international students, in particular, demand something more luxurious than your average student digs, with investors able to capitalise on this craving for higher end properties and of course, the higher rents that can come with it.
For investors, this offers a genuine opportunity. To find out how to take advantage of that opportunity, contact us today.