Under 24s flock to London houseshares despite market uncertainty
Rental data has revealed a marked increase in young renters seeking house shares in the capital throughout September 2020.
The data released by co-living property operators Built Asset Management (BAM) shows a 192% rise in signed rental contracts with those under the age of 24 when compared to the pre-lockdown months of January and February this year.
Of the under-24s taking out new co-living contracts for a BAM property in September, 62% were first-time renters in the capital. Additionally, 53% of under-24s opted for properties within ‘W’ postcodes in the past month.
This is at odds with the rest of the market according to BAM, which reports that SW postcodes remain the most popular among renters.
Is this the start of a new trend?
Co-founder and director of BAM Alex Gibbs calls this ‘a really interesting trend’ when viewing the broader market data which shows a net migration of young professionals out of London for the same time period.
He says: “Recent data has shown that, statistically, under-24s are at the greatest risk of losing their incomes as a result of the pandemic, and that this age group is bearing the brunt of the mental health toll as a result of the country’s COVID response.”
“Given that this demographic also reportedly experiences lower levels of fear around the concept of actually contracting Covid-19, it is perhaps unsurprising that these individuals are more willing to relocate into the Capital for work purposes when compared with professionals in other age brackets.”
BAM’s findings align with data revealed by employers that remote working often presents the biggest challenge where new and emerging talent is concerned. “Junior team members often require more face-to-face time as a necessity, in order to get to grips with things and to learn via osmosis,” Gibbs continues.
“Landlords within the co-living space can take solace in the fact that research conducted this month showed that, long term, there is virtually no difference in the proportion of professionals aged 25-44 planning to remain living in London, as compared with pre-pandemic. It seems that perhaps their younger counterparts are just acting a little more quickly.”
London’s rental market in slow recovery
The right types of property, accurately priced and extremely well presented, are usually letting well but some are taking longer to rent due to the sheer amount of stock available for tenants to choose from. Generally, rents are subdued and the market is extremely price sensitive so landlords must recognise that they will probably not achieve the same rent as they did this time last year.
But of course, letting a property is not just about the amount of rent that can be achieved. Finding a reliable tenant who will look after the property and keep it in good condition, as well as pay their rent on time, is equally important.
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