London welcomes young people to live in shared houses
There was a marked increase in young renters heading to the capital throughout September 2020, data from Build Asset Management reveals.
The company saw a 192% increase in rental contracts signed among young professionals who hire a homestay compared to the demographic during January and February 2020.
Of those under 24 who signed new cohabitation contracts for a BAM property in September, 62% were first-time tenants in the capital.
“This is an interesting trend.”
Alex Gibbs, Co-Founder, and Director of BAM said: “This is a fascinating trend, particularly when viewed in the context of the broader market data that shows a net (probably temporary) migration of young professionals out of London for the same period.”
“Recent data has shown that statistically, those under the age of 24 are at the most significant risk of losing their income due to the pandemic and that this age group is enduring the brunt of mental health as a result of the COVID response from the country.”
“Given that this demographic is also reportedly experiencing lower levels of fear around the concept of contracting COVID-19, it is perhaps not surprising that these people are more interested and more willing to relocate to the capital for work reasons compared to professionals of other age’s supports.”
He added: “Our findings here also marry perfectly with employer-disclosed data that remote work often presents the most significant challenge when it comes to new and emerging talent. Younger team members often require more face-to-face time as a necessity, to get acquainted with things and learn through osmosis.”
“Owners and investors within the living space can also take comfort in the fact that research conducted this month showed that, in the long term, there is practically no difference in the proportion of professionals between the ages of 25 and 44 who plan to remain living in London, as compared to pre-pandemic.”
“It seems like maybe their younger counterparts are acting a little bit faster.”
The pandemic, remote work, and shared housing.
The COVID-19 pandemic has represented a greater risk for young tenants in the City of London. Compared to older individuals, young people in London have a lower income, so making ends meet is not always an easy task.
With all the economic cuts that the Coronavirus brought with it, their income has become a fraction of the original. Without savings, without much work experience, and facing the uncertainty of tomorrow, young people in London turn to shared housing to slightly alleviate their expenses.
However, not everything is negative. With the increase in remote work as a measure to prevent the virus’s spread, young people have seen the light at the end of the tunnel.
Because the workload and hours have been reduced for them, young people can explore new job offers, especially with the Freelancer methodology, which has allowed them to earn extra income.
HICH LTD offers the best property survey service before, during, and after the pandemic. We have redoubled our efforts to maintain the quality standard that has made us a leading property survey company.
Want a Building Survey? Request it here!
Follow us on our social networks to keep up to date with the most relevant property market news, tips for being a responsible homeowner, and much more!
Twitter: @HichLTD
Facebook: HICH-LTD
