Guppies keeping the rental market strong

More than four in ten (42%) British adults under the age of 40 who do not currently own a home are now ‘Guppies’ – young people, many of whom have professional careers and big salaries, who have ‘Given Up on Property’. The Guppies of today are in stark contrast to the ‘Yuppies’ of the Eighties and Nineties – young urban professionals with a good salary and no issues buying a home. Zoopla’s latest survey of 2,000 adults under the age of 40 reveals that even among those earning over £60,000 per year, 38% have given up on affording a home in the next decade. All this means that the rental market in London is strong and we are seeing huge demand for rental homes in and around Surbiton.

For the first time in 13 years, paying rent is cheaper than repaying a mortgage for first-time buyers says Zoopla. This difference in the cost of renting versus buying is front of mind for many first-time buyers, who account for 1 in 3 home sales. Around 70% of them are renting in the three years before they buy a home, and they’ve historically looked forward to paying less in monthly mortgage repayments than they do in rent.

But with mortgage rates remaining high this year, the cost of repaying a mortgage each month is now more expensive than rent on the same property, keeping many in rental property for longer, despite rents rising due to demand which is good news for landlords.

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