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If you’re a tenant living in a rented property, know that you’re far from the only one. In fact, this study from UNCLE found that 21% of renters in the UK don’t plan on ever buying a house. That means that a whopping 1 in 5 residents are always planning to rent.
The UK has the 10th most renters around the world, with 34% of residents living in rented accommodation. Meanwhile, almost a third (30%) typically plan to rent for a very short period of time, which is 1-2 years.
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If you’re wondering why more and more young people are opting for rented properties, Ruth Barrett, spokesperson at UNCLE, told us that the primary reason is financial. “There’s lots of emphasis on buying your own home, especially to the younger generations, but saving up large chunks of money may not be possible nor something everyone wants to do, especially when the average property deposit is a staggering £57,000 for first-time buyers.”
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Moreover, Ryan Prince, the founder at UNCLE, similarly argues that home prices have just hit an all-time high, so there’s not many options for young generations to choose from. “The average property costing £249,000 requires a deposit of £57,000. There are many people who aren’t able to afford to save up a large chunk of money or choose not to own for a range of reasons related to flexibility and the benefits of ‘living as a service,’” he commented.
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What's more, “over the last year, the one lasting legacy of the pandemic is the abolition of the negative stereotypes around ‘working from home,’” Prince argues. According to him, with this newly emerged flexibility and fluidity of the mode of working, renting allows people to move freely and not be tied down to one area. “It makes remote working and renting a perfect pair,” he concluded.
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But it seems like not just the experts are aware of the appeal (or sometimes the lack of alternative option) that rented property offers. The rental housing market is now experiencing an unprecedented resurgence in demand after the pandemic ended, with vacancy rate dropping to the lowest it’s been since the mid '80s, which is 5.8 percent.
To keep up with this demand for rental apartments, the rental prices are currently increasing at an alarming pace. With cost of living crisis hitting the world with full power, more and more tenants find themselves at a crossroads of no longer being able to afford their rented properties.
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