Recent data from Halifax has once again highlighted the bias that is in the current property market.
Young professionals and millennials are trapped in a rental bubble, paying almost £1,000 more a year than those who own a property because of inefficiencies and a lack of transparency in the market.
With forecasts predicting house prices will increase by 14.2% over the next five years, young professionals will be facing the prospect of renting for even longer, and we therefore need to address the real issues that are continuing to appear in the market.
There are three main problems faced by millennial renters both in London and across the UK – a lack of information, the cost and a completely DIY search process.
As it stands, the market is not built to present renters with the best options for them in a simple and clear manner, with 60 percent of renters spending over a day researching the area they want to live in, before even looking at properties. The rise of online search portals has left renters overwhelmed with options and no clear guidance as to where they should move.
This lack of clarity ultimately results in an expensive and time intensive search, leading to people making rushed decisions on a property. Time-short professionals are left with a property that is of lower quality to what they wanted, and often more expensive, simply because it is available. Combine this with the cost of travelling to viewings and deposits, renters are already spending upwards of £2,000 on moving.
Alongside draining their finances, the rental market is negatively impacting millennials quality of life, with extended tenancy agreements sometimes leaving renters in unsuitable homes for up to 18 months. It is time for a shift in the market in favour of the renter, and as an industry we need to cut down the inefficiencies and lack of transparency.