We all know that young people are struggling to get on the housing ladder. Estate agents have been warning about this trend for years, and there has been much talk in political circles about how to address this issue, but the trend appears to be strengthening.
A recent report, conducted by Savills for the Local Government Association, found that the number of 25-year-olds owning homes has dropped dramatically by more than fifty percent since 1996, and that means more young people than ever are turning to renting.
According to the report, just 20% of 25-year-olds currently own their own home, while twenty years ago, this figure was 42%. This is hardly surprising given that the report also shows that average house prices are now around 7.9 times average earnings, making it hard for those at the beginning of their careers to afford to own their own home.
This trend is having an impact on the rental sector, as more young people opt to rent rather than buy. While the vast majority of young tenants take their duties responsibly, as letting agents know all too well, there can be negative consequences associated with tenants who are inevitably inexperienced in the responsibilities of running a home.
In an increasingly youthful rental sector, tenant selection takes on extra importance, but sometimes despite your best efforts, tenancies go wrong. That’s why, in the current climate, a robust professional indemnity policy is a must for letting agents. Our professional insurance product has been designed with property agents in mind and is continually evolving as the landscape changes.
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