‘Generation Rent’. It’s probably a term you’ve heard used in the news, especially in regards to first-time buyers trying to get onto the property ladder. But what exactly is ‘Generation Rent’ and what can we learn about Britain’s nation of renters?
‘Generation Rent’ is a term generally used to describe the younger generation who cannot afford to get onto the property ladder and instead are forced to rent. It’s something that now unfortunately affects a lot of young people, meaning millennials are finding it difficult to secure their first home.
The current conditions of the housing market haven’t favoured those looking to buy in recent years. It doesn’t come as a surprise that saving up for a deposit becomes harder when house prices rise. Yet a recent survey has discovered that millennials are in fact more optimistic than is commonly reported. Remarkably, less than half (47%) of millennials agreed that Britain is experiencing ‘Generation Rent’.
But what makes millennials feel optimistic? With further evaluation of the survey, there seemed to be a correlation between optimism and a lack of understanding. Causes that contributed to misunderstandings when it came to buying a house were around finance, available government schemes and getting the right advice.
For any renter trying to save up for a property, budgeting is key. Not being able to manage your finances correctly can be detrimental to your chances of securing a deposit and getting a mortgage.
Regardless of the importance of budgeting, 20% of those surveyed don’t contribute any money towards their savings and 65% don’t set aside budget for the other expenses that come with buying a house, such as purchasing furniture. It therefore becomes clear that those determined to buy a property need to first think about how best to budget their finances.
Getting support when buying your home can be one of the easiest ways to help you achieve success when trying to purchase a property, especially if you’re unsure about a certain aspect of the process. Furthermore, never carry on with a transaction if you feel you don’t fully understand the ins and outs of the deal. It’s much easier to find out what you’re agreeing to early on than trying to back out later.
You can seek advice from a number of sources, from banks, who provide a number of useful services, to the Government, who run various schemes to help people get onto the housing ladder, such as Help to Buy.
Being fully aware of the options available will no doubt help your chances of finding a suitable and affordable home. Don’t feed the idea of ‘Generation Rent’ and get smart about buying; with that in mind you can be more optimistic.