Mid-life singles among the most likely groups to rent, young professionals pushed out to traditionally family suburbs from city centres
London, 22 July 2014 – High house prices, the growing proportion of urban flats as new build properties and increased difficulty in obtaining a mortgage have combined to fuel the rapid expansion in renting, forcing diverse groups of the population to look for alternatives to buying, according to the latest analysis from Experian’s Mosaic people classification.
ONS statistics show a reversal in the rise of owner occupation for the first time in almost a hundred years, echoing European tenure patterns. Experian data reflects this trend, finding that older groups of society are emerging as renters and are taking up affordable properties from the younger generation. This in turn causes a knock on effect as young adults are forced to rent affordably in suburbs previously dominated almost exclusively by families.
The rise of the middle-aged renters
Experian has identified a new group of people, termed Midlife Stopgap who are increasingly part of this trend – maturing singles in employment, who are renting short-term affordable homes, possibly due to the dissolution of relationships or making a new start after a career move. After students, this highly transient group has become the most likely in the UK population to rent their homes and their characteristics include:
Top 10 towns for Midlfie stopgap
|Thurrock - Essex|
|Birmingham - Erdington|
Top 10 towns for flying solo
|Cambridge West, Cambridge|
|Bury St Edmunds|
“A rapid expansion in the rental sector has, for the first time, reversed almost a hundred years of rising owner occupation. Renting is no longer the preserve of the young career starters but we increasingly see groups of older people and people of varied wealth joining them,” commented Nigel Wilson, Managing Director of Consumer Insight & Targeting at Experian Marketing Services, UK&I. “A prolonged stay on the bottom of the property ladder creates a shortage of supply for newcomers, forcing them to seek alternative options. This is amply demonstrated by a recorded increase in the length of residency for younger families in starter homes, rising to 11 years from five, forcing others to look to rent property as a first step.”
Young singles in family neighbourhoods
Renting amongst younger demographic groups in city centres has been well documented, but Experian has identified a new trend within this. In London, Land Registry data says that house prices have grown by 36% in the last five years against only a 9% rise in England and Wales for the same period. This has created a polarisation of the capital and several groups of people who can no longer afford to buy have switched to renting or moved elsewhere. Flying Solo another Mosaic grouping therefore no longer seek to rent in city centres but are increasingly moving out to pleasant suburbs – traditionally family neighbourhoods – to find affordable, quality housing.
Key features of this group include:
“Home ownership doesn`t follow the linear pattern it used to – therefore businesses need to identify how their customers have changed and what this means for their strategies when trying to market to them,” Nigel Wilson continued. “With a long term rise in renting creating higher density, less family-oriented neighbourhoods populated by people with increased disposable income due to a lack of outgoing cost on house related expenses, we expect to see an increase in demand for convenience stores and fast food chains along with more spend in bars and pubs and a shift away from family brands. As brands learn more about these new types of renters , customers can expect to see improved levels of service, with better access to types of product and facilities that they are interested in and that fit with the patterns of their lives."
Experian unveiled a new version of Mosaic on 1st April 2014, which offers new and unparalleled insight into demographic shifts in the population of the United Kingdom. Modelled using the latest Census data, Mosaic offers insight into households, living patterns and the shape of our cities.
Ruder Finn for Experian Marketing Services
Experian is the leading global information services company, providing data and analytical tools to clients around the world. The Group helps businesses to manage credit risk, prevent fraud, target marketing offers and automate decision making. Experian also helps individuals to check their credit report and credit score, and protect against identity theft.
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