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UK Property Market Trends: Renters Prefer City Living & Sustainable Amenities

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    MRI: Younger Renters Prefer to Rent Rather Than Own

    According to MRI Software’s 2024 Rental Housing Trends Report, tenants (particularly younger ones) are increasingly preferring to live closer to strong job markets, convenient transport links, and social activities rather than owning their own property.

    Their data reveals that 80% of renters feel priced out of the housing market due to affordability issues, with 33% having already abandoned homeownership aspirations.

    Renters also consider environmental sustainability factors, such as high-efficiency insulation and renewable energy systems, to be important, but only if they drive cost efficiencies. Given this growing demand for sustainability, investing in new-build properties outfitted with the latest eco-technology may be a smart strategy for investors.

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      Desire for Rural Living Declined Post-Pandemic

      MRI’s Rental Housing Trends Report indicates that location and affordability are some of the top concerns for the majority of today’s tenants. MRI predominantly attributes this as a response to a post-pandemic world, with a rise in businesses reverting to office environments leading to a greater need for living close to or within a city for most working professionals.

      The 2024 survey showed a significant increase in the number of renters who prefer to live in a city rather than a rural area compared to 2022, with 33% expressing this preference, up from 25%.

      The percentage of respondents preferring to live in apartments compared to houses has also doubled, again suggesting that COVID-era aspirations for rural living have declined, with younger renters, particularly, aspiring to city living.

      MRI also suggest that the number of long-term renters has also risen across all age groups, which could lead to a much wider pool of tenant demographics for investors to target.

      Overall, younger generations were significantly more inclined to prefer city living, with 50% of those aged 18-24 aspiring to live in a city compared to just 15% of 55-64 year olds.

      According to MRI: “This reveals how different generations value the closeness to daily amenities, career opportunities, and social activities, with younger individuals more inclined to embrace city life.”

      Respondents also valued environmental sustainability in property, with features such as insulation and renewable energy regarded as “as important” as more traditional amenities like parking. However, sustainability features that do not drive cost efficiencies were valued at much lower levels.

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      Affordable City Centre Properties Outside the Capital Preferred

      Lower rents tend to be more noticeable in the North than the South, which MRI suggests may be why the region is more popular with tenants and buyers. Overall, the cost of living generally tends to be lower in these areas, which is likely to contribute to the affordability of rent.

      While London has the highest proportion of renters to homeowners compared to any other UK city, large regional cities such as Manchester and Liverpool are also extremely popular among tenants seeking to live close to the growing number of job opportunities and amenities on offer.

      In the South, MRI notes that fierce competition within the rental market drives up prices. Consequently, some renters may choose to relocate to the North to get more space for their money while still keeping remote jobs in the South.

      Commenting on MRI Software’s findings, Dan Foryszewski, Director for Residential Investor Solutions at MRI Software, said: “The latest research from MRI Software reveals a significant shift in renter behaviour, with affordability and financial pressures pushing the aspiration for home ownership further out of reach for many.

      “Today, 80% of renters feel priced out, and a growing number are choosing to rent long-term, which is why the need for affordable housing solutions has never been more important.”

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      Author

      Reece Pape

      Reece Pape is a property writer at RWinvest. Utilising up-to-date property statistics and data, Reece aims to keep investors informed on the latest market developments.

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        Eco-Property, Market & Investment Trends, UK