It is always hard to predict the right type of tenant for a landlord, but Strutt & Parker has had a go.
The agent has teamed up with developer Stanhope and housing association Network Homes to look at the profiles of tenants actively choosing renting as a lifestyle choice.
The firm’s Urban Renters survey of 1,100 people found 9% of tenants have chosen renting so they can live in London.
Research by the agent has identified ten different rental tribes in urban cities that they say will shape the rental market.
1. Bubble Gazers are renters who wish to time the property cycle just right before they buy. 21% of respondents
believed opportunities for first-time buyers will improve over the next five years.
2. Catchment Chasers are epitomised by Tiger Mums (and Dads): these are families who rent so their children can access the best schools. 25% of respondents thought they would rent a property so their children could go to a ‘good’ local school.
3. Continental Drifters are comfortable with the concept of long-term renting, which is the norm in European countries like Germany and Switzerland. 62% of respondents agree that in 15 years’ time more people will rent homes than own them.
4. Homing Pigeons tend to rent for a period of time before they boomerang back home to elsewhere in the UK, or farther afield. 30% of respondents said ‘London is a career move for me but in a few years’ time I’ll head home’.
5. Nest Eggs are those in rental who view home ownership as the ultimate aspiration due to its investment status and perceived security. 45% said they should try to get on the housing ladder as quickly as possible.
6. Uni-Leavers are a tribe of graduates who have recently left modern student accommodation and prefer to stay in a similar kind of rental structure, rather than moving into a shared house. 44% value renting for the lack of responsibility for repairs and maintenance.
7. Urban Foxes prioritise location over everything else and will eschew space and comfort to attain it. 36% believe they need more space but are not ready to give up their city lifestyle.
8. My-Spacers accept renting as their best housing option and have the income to pay a higher rent so they can be in the right location with the right lifestyle. 14% rent because they can live in a better home or cannot buy in their desired location.
9. Globalistas are part of the international high-net-worth club that includes celebrities, athletes and socialites, living a transient lifestyle which means they may only live in the UK for a short period. 53% think renting gives them flexibility, especially if they have to move at short notice.
10. Oyster Catchers are those that live in a town or city so that they don’t have to commute so far. 20% of respondents moved from their previous property to be closer to work.
Stephanie McMahon, head of research at Strutt & Parker, said: “We are not talking about Generation Rent, we are now talking about Every Generation Rent.
“The UK private rental market is going through a period of sustained growth, doubling in size to 5.4 million from 2001 to 2014, a trend which only looks set to continue. 48% of those who responded to our Urban Renters survey had been renting the same property for at least the last two years, with 24% of tenants anticipating renting as a family in the future.
“While the requirements of each tribe do not vary dramatically when it comes to the specification of the accommodation they are seeking, they are clearly differentiated by their motivations for being in rented accommodation.
“We believe that all of these tribes have great potential to influence both the rental market and the build-to-rent product that will be delivered to the housing market in the next decade.”
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