Assetz® News - What a renter wants

What a renter wants

8th August 2007 |

Rental demand is typically high in the UK's city centres, with prime property in bustling areas preferred by many tenants over many other locations. While most people dream of owning a beach home or a property surrounded by fields in the countryside of the UK, the reality is that in order to afford their ideal home, Britons have to work hard during their week.

And the daily grind is leading many to choose to live near their place of work, seeing increasing demand for rental property in city centres. The reasons for this are manifold, but a key reason could be that younger Britons, unable to afford their own property yet keen to live in the city, are forced to rent.

Alliance & Leicester Mortgages' latest movingimproving index shows that potential first-time buyers regard proximity to their place of work as one of the main factors contributing to their choice of property.

Just over half of respondents said it was the most important element, followed by 34 per cent saying good transport links are key to their decision of where to buy.

And while the survey revealed that four in ten renters dream of buying their own property, the reality is that such plans will have to be shelved - for a while at least - as potential first-time buyers in the UK battle affordability problems.

However, while they wait for improvements in the conditions for becoming property owners, demand for rental property continues to climb - and buy-to-let investors could take note of tenants' preferences of where to live in order to ensure they fulfil this demand.

A recent survey by insurance provider More Than revealed the hotspots favoured by what it called Yappies – young, affluent professionals. Of the ten top places in the UK, five were located in London. Other cities to feature included Glasgow, Salford, Liverpool, Leeds and Newcastle-upon-Tyne.

"Spotting the areas where future house price growth will occur has become the holy grail for this nation of homeowners," commented Peter Bolton-King, chief executive of the National Association of Estate Agents. He added that one indicator to pinpoint such areas is to see where Yappies are choosing to live.

"This tends to be an early warning that previously unfashionable areas are becoming more popular," he said, adding that areas that had been redeveloped in recent years are likely to have an influence.

"There has also been an increase of apartments being built in city centres specifically targeting young professionals," Mr Bolton-King concluded.

Essentially, landlords need to decide which type of renter they want to target. While some might prefer the bustling nightlife and vibrancy of city centre living, others may be looking for something else altogether.

Barbara Wright, area sales manager for Redrow Homes in the north-west, said while city centre living is "popular", many professionals are looking for "all the style and sophistication of apartment living" but preferring to live away from the centre to enjoy "a more tranquil way of life away from the hustle and bustle".