UK renters prioritise home working space amid return-to-office plans

M&G’s recent rental survey gathered opinions of more than 1,000 25–40-year-olds
75% of respondents using rooms and home space differently from pre-pandemic
Average person spends 13 years renting but now expects more for their money
Most desirable facilities include private outdoor space and wifi

London, 26 October 2021 – The Prime Minister may have summoned workers back to the office, but Britain’s home renters have other ideas. An overwhelming majority of UK renters aged 25-40 want desk space for working from home, according to new research from M&G Real Estate.

Almost nine out of ten (87 per cent) of those who have experienced home working questioned in M&G’s 2021 Home Renters Survey said that, in the wake of the Covid-19 pandemic, dedicated home workspace is ‘quite’ or ‘very’ important to them. Furthermore, three quarters (75 per cent) of these home renters stated they were now using rooms and spaces at home differently. More than a third have improved garden or balcony spaces or rearranged internal areas for ‘living or relaxing’ during the various restrictions, while 34% of respondents had used the time to allocate more space for exercising or to improve sleeping areas.

When asked if the pandemic had made them more or less likely to continue renting in the future, just over a quarter (26 per cent) said they were less likely to continue renting, rising to 37 per cent among those on higher incomes (£50,000 plus per annum). Nearly two thirds (64 per cent) said that Covid-19 has had no impact on their attitude towards renting. However, 41% of those who had recently moved home, compared with 38% of those considering moving, said that the pandemic had ‘probably’ or ‘definitely’ hastened their decision. Nine in ten of those surveyed live in accommodation provided by a private landlord.

Among the reasons for wanting to move, a desire for ‘more space’ was key (80 per cent of those who had moved in the past 18 months), as well as ‘better access to a green space or garden’ (63 per cent, rising to 70 per cent among recent movers with families). According to the survey, this has resulted in a net gain of 5 per cent of movement in the direction of the suburbs or rural areas compared with people moving back into cities.

Fewer than four out of ten respondents (37 per cent) felt that renting an energy-efficient property is ‘very important’ and among these the attraction of ‘lower energy bills’ was greater than ‘saving the planet’.

The survey reveals that renters expect to remain in rental accommodation for an average of 13 years before being able to buy a property. Whilst many seem resigned to this, it also confirms that attitudes are shifting with an emphasis on increased value and a rental experience that is as painless as possible - aspirations sharply accentuated by the pandemic. Notably, respondents in the younger age range feel less negative towards renting than their older counterparts.

“This research focuses mainly on those who are developing social networks or building families – life stages we refer to as ‘Connect’ and ‘Grow’”, says Alex Greaves, Head of UK & Euro Living at M&G Real Estate.

“The rapidly growing Build-to-Rent (BTR) sector is addressing changing attitudes towards value and quality and providing many of the increasingly popular communal features, amenities and services that are seldom found in privately rented properties. Today’s renters are becoming more sophisticated in their demands and are aware of the importance of living somewhere which fulfils all of their needs. There is a clear opportunity for institutional landlords to deliver high quality accommodation that goes well beyond merely location and pricing.

‘Home renting in a post-pandemic UK’ was undertaken on behalf of M&G by market research and insight agency Flood + Partners across a sample of 1,008 UK renters aged 25-40 who have never owned a home.

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OpenAbout M&G Investments

M&G Investments is part of M&G plc, a savings and investment business which was formed in 2017 through the merger of Prudential plc’s UK and Europe savings and insurance operation and M&G, its wholly owned international investment manager. M&G plc listed as an independent company on the London Stock Exchange in October 2019 and has £370 billion of assets under management (as at 30 June 2021). M&G plc has over 5 million customers in the UK, Europe, the Americas and Asia, including individual savers and investors, life insurance policy holders and pension scheme members.

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OpenDisclaimer

This press release reflects the authors’ present opinions reflecting current market conditions; are subject to change without notice; and involve a number of assumptions which may not prove valid. It has been written for informational purposes only and should not be considered as investment advice or as a recommendation of any particular security, strategy or investment product. Past performance is not a guide to future performance.

Issued by M&G International Investments S.A. in the EEA and M&G Investment Management Limited in the UK and outside the EEA (unless stated otherwise). For the purposes of AIFMD, M&G Luxembourg S.A acts as Alternative Investment Fund Manager. M&G Investment Management Limited is registered in England and Wales under number 936683, registered office 10 Fenchurch Avenue, London EC3M 5AG. M&G Investment Management Limited is authorised and regulated by the Financial Conduct Authority. The registered office of M&G International Investments S.A. and M&G Luxembourg S.A is 16, Boulevard Royal, L-2449, Luxembourg. M&G Real Estate Limited is registered in England and Wales under number 3852763 and is not authorised or regulated by the Financial Conduct Authority. M&G Real Estate Limited forms part of the M&G Group of companies.

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