Rent to rent won't work in a recession!
In this week’s episode we’re talking about another common myth.
This time it’s that rent to rent won’t work in a recession.
So let’s get into it...
But rent to rent won’t work in a recession!
The ironic thing is that residential rental demand increases in recessions.
More people prefer to rent rather than buy in recessions.
In 2017 home ownership in England was at a 30 year low according to the English Housing Survey, which found home ownership at its lowest level since 1935*.
The private rental sector has doubled in size since 2004 with 4.5 million households renting, including almost 50% of people aged 25-34 renting their homes.
Royal Institute of Chartered Surveyors shows that following the 2008 recession there was a continued rise in tenant demand**.
So although people state as though it's a fact that getting into rental in a recession is bad.
They are wrong.
Recessions see growing demand for rental property and especially affordable rental property, such as HMOs.
One of the side-effects of a recession is more relationship breakups and often people choose a house share as a first step before finding their own place.
More people share a house in a recession as it’s less risky.
Or if your job is under threat.
I know many of our housemates have put off buying their own homes at the moment because of the uncertainty.
When people are cautious about the economy, history shows that people prefer to rent rather than buy.
And good quality affordable rental options like house shares are in demand.
That's it for this week guys,
And if you want more.
You can see our searchable series of videos, podcasts and all things rent to rent here
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Until next time, have a great rest of the week.
And remember,
Believe Bigger, Be Bolder and Be a Gamechanger!
See you soon!
Stephanie & Nicky
xx
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