It has long been regarded as a truism that living at home into young adulthood in order to save for a deposit on that first dream house or apartment is not a “Good Thing”.
We were interested to hear a senior underwriter at Aviva commenting today on some research which indicates that those young savers are, in fact, largely quite content – as are their parents, for that matter. The youngsters get ongoing support and assistance and the parents enjoy an extended period of company and companionship with their offspring.
Be all that as it may, the interesting underlying point is that young people emerging into the world of work are, if not ecstatic, at least content to stick with Mum and Dad whilst they prepare to get on the property ladder. What they are seemingly not inclined to do – at least at the present – is abandon the idea of home ownership altogether and embrace the brave new world of PRS. They don’t seem to be enthralled by the idea of starting out with a one bed unit on one side of a development and, over the years, progressing through the mix of layouts in the development until they fetch up in the 4 bed house/ apartment with their growing family.
Here in the UK we do have an ingrained tendency to regard home ownership as the gold standard. There has been a lot of theorising that this is a generational thing and that all sorts of modern influences such as technology, employment patterns, house prices/ availability etc., etc., etc….. have started a shift towards the European rental model.
What appears to be the case is that this is either not happening or is taking a lot longer to happen then was expected. Either way, whither the PRS revolution? On hold, or on the edge?