What are Generation Rent splashing their cash on?
Going on holiday
As a society, we are moving towards valuing experiences above assets, with holidays being near the top of the list of go-tos in the “experience economy”. Perhaps then its no surprise that holidays came out on top for renters’ spending goals. A third proclaimed they were saving to go on holiday, be that a lavish summer holiday in the Caribbean or a staycation in Brighton – for renters, a trip away tops the list.
Second on the list, 31% of savvy savers are stashing cash away for a rainy day. This flexible-living cohort might lease their cars and stream their films, but they still know that an unexpected expense can arise out of the blue and prove problematic for your wallet. Financial gurus recommend that everyone has an easy-access account with money that will see them through three to six months’ worth of essential outgoings, and renters are abiding by this rule by saving for an ‘emergency fund’.
Buying a house
Less than a quarter of renters (23%) are saving for a house deposit, with women leading the charge at 26% to men’s 17%. Perhaps unsurprisingly, younger renters are most likely to be pocketing the pennies with an eye to getting on the property ladder – 38% of 18-34 year-olds are saving to buy, compared to 25% of 35-54 year-olds.
Other top savings goals for UK renters include saving for retirement (14%), spending money on their children (10%), buying a car (10%), and leisure activities such as going to the cinema or family days out (9%).
Disposable income is used to fund the lifestyle people want to live, and it’s clear that owning a house is no longer the main financial goal for renters. Landlords must make a concerted effort to understand they’re tenants. Those who really comprehend the wants and needs of renters in the UK will be most equipped to provide the best accommodation, the best service, and ultimately generate the best yield from buy-to-let properties.