Research has found that UK homebuyers are increasingly investing in multiple properties, rather than owning one home purely for security and residential purposes, in order to generate another income stream
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The pandemic and cost-of-living crisis have created a homeowner-crazy generation over the past two years with very different goals when it comes to buying their first home.
A new social study by property concierge platform Moveable shows that leveraging capital for property has become a top priority for buyers. However, when it comes to brick and mortar ownership, investing in developments now trumps housing.
The study revealed a complete shift in intentions behind home buying behavior in the UK, revealing a seemingly younger and more property-conscious generation of homebuyers driving the property market:
- 14% of Britons want to buy a house to develop in the next year, this figure rises to 40% for 18-34 year olds.
- 15% want to buy a house in the next year to renovate it themselves, with this figure rising to 40% for 18-34 year olds.
- 14% would like to buy a house as a source of passive income in the next year, this figure rises to 25% for 18-34 year olds.
- 28% of Brits want to move up the property ladder before starting a family, rising to 50% for 18-34 year olds.
Research from The English Housing Survey shows that 35% of Brits who own a second home use it as a long-term investment and source of income. In addition, the total wealth of UK second home owners – including buy-to-let investments and overseas properties – has risen in value from £610bn in 2001 to nearly £1trillion in 2019.
With such favorable financial returns to come with the property ladder, it is not surprising that Britons (including Millennials and Gen Z) are now looking to the property market as a viable vehicle for a secure extra income that goes beyond a one-stop home.
Analyzing the UK housing market at a macro level, it is clear that house prices across the UK remain resilient. The average house price has continued to hit new heights and is now £354,563 – according to the Office of Budget Responsibility (OBR).
House prices have seen a sharp rise of £6,000 in the last month alone, notwithstanding the geopolitical and socio-economic challenges that have swept through the UK.
In parallel, the UK ABC1 population and broader critical mass have seen a steady increase in disposable income, with a ‘richer’ workforce seeing average annual household income rise to around £31,772 in 2021 – up from £5,720 in 1985. This is at the same time economical Trends have set the stage for the most enterprising generation of homebuyers to date.
The data shows that new home-buying motivations are becoming increasingly lucrative and entrepreneurial, particularly in a sector where the rise in average house prices shows no signs of slowing down.
Simon Bath, CEO of iPlace Global, comments: “Despite the many challenges the UK has faced over the past decade, the average house price continues to show consistent growth and now millennials have started to embrace the opportunities that are opening up in the sector to lie.
“Since the early 2000s, there has been an increasing trend in the housing market towards owning more than one home as a source of income – currently one in ten adults in the UK also owns their own property, many of whom obtain some form of property Income through development and purchase for lease.
“Over the next decade we are likely to see a shift in home buying sentiment towards a more entrepreneurial arena as the rapid rise in property prices continues; However, this means that we may also see an increasingly exclusive and lucrative marketplace.
“Homes are much more valuable today than they used to be, and with that comes investment opportunities for those looking for a different form of income generation.”
https://www.mirror.co.uk/money/uk-homebuyers-getting-younger-millennials-26659479 Homebuyers in the UK are becoming younger and younger, with Millennials and Gen Z dominating the property market