Family Rental Trends: Should Landlords Focus on Families?
Changing Times in the Rental Market
The UK’s property landscape is evolving, with family rental trends showing families now make up a significant portion of new tenants. Recent findings from the Mortgage Advice Bureau show that almost one in three first-time buyers already have children. As a result, many families secure their first home while raising kids. This development is reshaping the priorities of both landlords and tenants within the private rented sector.
The Age of the First-Time Buyer Keeps Rising: Family Rental Trends
According to the latest research, the average age at which Britons purchase their first property has crept up to 34. This increase reflects wider economic pressures and shifting social norms, as would-be homeowners face higher house prices and stricter affordability tests. Interestingly, nearly half of first-time buyers today are relying on additional sources of income to fulfil their homeownership ambitions.
Not only are buyers getting older, but their circumstances are changing. An impressive 31% of those climbing onto the property ladder now have dependents, highlighting the growing importance of family-friendly rental homes. It’s no longer just young graduates searching for a flat share – families are actively seeking comfortable, long-term accommodation within the rental market.
Modern Tenants: Professional and Discerning
The profile of the average tenant is far removed from the stereotype of students and twenty-somethings. Today’s renters are predominantly working professionals, and many are searching for homes that offer more than just the basics. Expectations have risen as tenants now want good transport links and proximity to employment hubs. Moreover, families seek quality schools and safe communities.
The push for homeownership is not a sprint. First-time buyers are now saving an average of £24,500 for a deposit, setting aside around £585 each month from an average annual income of £35,900. Ninety-seven percent of these buyers are in full-time work. Therefore, demand for well-located rental properties is higher than ever.
Solo Buyers and Shared Living: The HMO Surge
Although families are a key demographic, solo buyers are also on the rise. Nearly half of first-time purchasers are buying alone, a trend that presents unique challenges due to the cost of renting independently. As a result, Houses in Multiple Occupation (HMOs) have become increasingly popular. Quality and management of HMOs have improved in recent years. As a result, they now offer affordable, sociable living arrangements.
High Demand, Varied Needs: Family Rental Trends
Rachel Geddes, Strategic Lender Relationship Director at Mortgage Advice Bureau, comments on the complexity of the first-time buyer market:
“Our research underscores just how varied the market has become. There’s no single solution to the challenges buyers face, whether it’s affordability or regional disparities in property values.”
She also emphasises the urgent need for the housing sector to respond to these changes:
“With the average age of first-time buyers now at 34, it’s clear more needs to be done to support those looking to buy their first home.”
Despite the hurdles, there’s optimism for the future. Demand for homes remains robust, and more lenders are introducing flexible and innovative mortgage products to help buyers take their first steps. With expert advice and the right guidance, there’s genuine hope for those aspiring to own their own home.
What This Means for Landlords
So, where does this leave property investors and landlords? The evolving needs of first-time buyers provide a valuable roadmap. Families are now a sizeable group in the rental market, seeking homes that can cater to their lifestyle – think extra bedrooms, safe outdoor spaces, and proximity to schools.
But it’s not just about families. Young professionals and solo tenants are looking for convenience, flexibility, and high-quality accommodation. Landlords may target families, individuals, or groups of friends. However, understanding tenant preferences is crucial for maximising occupancy and securing long-term tenancies.
Practical Steps for Landlords: Family Rental Trends
- Cater to Families: Properties with multiple bedrooms, secure gardens, and access to good schools are in high demand among family renters.
- Meet Professional Standards: High-speed internet, modern appliances, and easy access to transport links appeal to working professionals and solo tenants.
- Consider HMOs: For those seeking to maximise rental yields, well-managed HMOs can attract single tenants looking for affordability and community.
The Outlook for the Private Rental Sector
With more people waiting longer to buy and family renters becoming increasingly common, landlords have an opportunity to adapt and thrive. The key is to remain responsive – whether by refurbishing properties to meet modern standards or by marketing homes with the features that matter most to today’s tenants.
The market is constantly changing, but one thing is clear. Landlords who adapt to tenants’ shifting needs will enjoy high demand and longer tenancies.