Ask any of your friends living in rented accommodation what their priorities are for saving money and you might well be surprised.
The common assumption is that most people living in rented accommodation are merely doing so while they save for a deposit on a property of their own – not so, according to a new study conducted by industry experts Property Ladder.
In actual fact, living in rented accommodation affords people a greater amount of disposable income and a great deal more flexibility. The world is changing, the way we work is changing, and so is the way we live. For previous generations, you had a job for life and that meant you needed a house for life too, a solid base that wasn’t likely to change.
According to statistics compiled by insurance company LV (Liverpool Victoria), the average amount of time a person in the UK stays in their job is now around 5 years, and that figure is even less in the USA. Changing jobs doesn’t necessarily imply changing residence, but it does make it more likely, particularly for ambitious people who want to progress their careers quickly.
Perhaps that explains why 33% of renters choose to save money for a foreign holiday rather than for a deposit on a property. The figures tell an even stronger story than that because a further 31% of renters prefer to save for an emergency fund or put money aside for their retirement rather than save for a deposit.
Our very own Ian Bythell, industry expert and Director of Petty Real, gave his opinion:
“The government needs to recognise the changing marketplace and act fast to protect the interests of Landlords and Tenants. We’ve been aware of changing market trends for a while now, and these latest figures just confirm what we already knew.”
“I would urge young people especially to consider their future. Renting might offer you a better lifestyle in the short term and more flexibility, but owning a property gives the stability you need for later in life – especially if you’re planning to start a family.”
If you are currently living in rented accommodation and would like advice about how to become a first-time buyer then Petty Real have got the knowledge and experience to help. Members of the public are more than welcome to pop into one of our branches where you can discuss your options with one of our advisors. We can take a look at your individual situation and make a plan for you to get on the property ladder.