Young professionals today are keener on renting properties than buying. I’ve done a brief analysis of what could potentially be the reason that is driving young property buyers away. Here is a glimpse of the list…
Young professionals who are looking to buy fear that their choices may be limited as they may not be able to afford the ones that they would ideally buy at a future date.
Bidding Adieu to Financial Freedom
Buying a property can take a big bite of their financial freedom. The very thought of them bearing the maintenance costs turns them off. The maintenance responsibility lies with the landlord once a property is rented, hence the load is off their shoulders and they prefer that.
Career a Hindrance
Young professionals may need to change their jobs, career choice and may even have to relocate. Buying a house may tie them down to a single location and may restrict their scope for growth.
Property Prices in the UK
UK property prices are out of reach for many first time buyers. The average house price in the UK is now around £275,000 which is about 10% more than last year. With an increasing trend in property prices, first-timers find it hard to shell out that kind of money.
Qualifying for a Mortgage
It is imperative to have at least 5% of the property value for deposit in order to qualify for a mortgage. Also, qualifying isn’t as easy as it was a few years back as stringent tests and procedures are in place to have a check on the reckless lending that almost slit the financial market a few years back.
With young professionals more keen on reducing their maintenance bills, the concept of ‘hutching up’ or enjoying shared accommodation has become a common practice. Many young professionals live in the same accommodation in separate rooms that allows them to share their bills and thereby helps them save. Professionals who prefer this arrangement do not find property purchase that appealing.