The percentage of people in the UK who own their own home is currently falling, and not just because housing is becoming more expensive.
A recent survey of almost 1,400 tenants in London suggests that while many people do aspire to buy their own home, others are more than happy living in private rented accommodation
More than half of the respondents could be classified as lifestyle tenants, with almost a quarter of all tenants – 23.82% – stating that they chose to rent because it suited their lifestyle or they did not want a mortgage, while nearly a third – 31.41% – said that they chose to rent because it enabled them to live in an area nicer than the one in which they could afford to buy.
What is more, a third – 33.8% – of respondents stated that they were only prepared to commit 20-30% of their monthly income towards housing, while a further 11.78% said they would only commit up to 20% of their income towards housing costs.
Marc von Grundherr, director at Benham & Reeves Lettings, said: “I think that in labelling Millennials as Generation Rent, the older generations are prescribing their own values onto the younger one. Whereas Baby Boomers or Generation X craved the stability and financial security of home ownership, today’s young professionals see things differently.
“Many dream of living and working abroad and don’t want the burden of a home. Others would rather have extra spending power rather than sacrifice for a deposit. What is very clear from this survey is that a significant number of tenants are in rented accommodation not because they can’t afford to buy, but because they are choosing to rent.”