Sometimes the property market can throw out some surprises for investors and landlords. Surprises that can catch some off-guard. But for us in the specialist lending market, they serve as a reminder to remain flexible, and never assume anything.
Take this recent analysis from Zoopla, it found that over a third of Brits wouldn’t buy a home if it wasn’t walking distance from a pub — specifically, anything over a mile was a “deal-breaker”.
The surprising part came from the demographics involved. For Gen Z homeowners, over half (53%) said their local pub played a role in their purchasing decision.
Interesting, considering that Gen Z, generally, is rejecting alcohol more significantly than other generations.
Mintel found that British consumers aged 20-24 are almost half as likely to prioritise spending on alcoholic drinks for the home than those aged over 75.
What’s more, while half of over 65s did not limit their alcohol consumption in 2023, 40% of Gen Zers did, and around a quarter of Gen Z consumers said they choose low- and no-alcohol drinks due their comparatively healthier benefits.
So younger generations are cutting down on booze, but prioritise living near a pub — a contrast, yet one that property investors should note.
This raises the question though, what other surprises lurk in the property market? Again, it’s the young who could end up throwing the very landlords/investors who are trying to target them.
Market Financial Solutions surveyed a nationally representative sample of UK adults in Q4, gauging what features and businesses people deem to be important on their local high streets — we categorised the results by age, location, homeownership status, and gender.
Some of the results made us do a double take — despite embracing a digital world, 88% of 18-34-year-olds deemed post offices to be important or essential for their local high street.
Also, while we’re constantly told how young people have limited funds for housing, 47% in our results said that having boutique shops for fashion or home décor/furniture nearby was crucial — higher than any other age group.
The young are taking their living arrangements very seriously. More so than many may expect. Nearly half (48%) of 18-34-year-olds revealed they shop more on their high street now than they did five years ago.
Meanwhile, 34% said that since the start of 2020, the decline of their local high street has played a role in them moving property, again, higher percentages than any other generation.
Property investors ignore these results at their peril, it’s true, these preferences may not amount to much at the moment.
Young people may not have yet accrued enough wealth or economic clout to substantially move the dial in the property market. But we may not have to wait very long for this to change.
A “Great Wealth Transfer” is looming. In the UK alone, some £7 trillion is expected to pass between the generations by 2050. Obviously, property isn’t the only thing this money could be spent on. But it’s likely to make up a substantial amount.
Gen Z are keen to get into housing in any way they can. Those within the Gen Z age bracket remain hopeful on getting onto the property ladder before turning 30, according to a Purplebricks survey. The vast majority (84%) are even willing to buy a property with a friend to do so.
Property investors, clearly, need to be ready for anything. A market for young buyers and renters may open up sooner than many may realise.
These youngsters may also bring with them certain unexpected, yet targetable preferences. As we move into 2025 and beyond, Market Financial Solutions will be ready for all the opportunities brokers and borrowers come across — expected or otherwise.
