Over half of ‘iGen’ renters are willing to pay more rent for access to a swimming pool, with 63 per cent willing to pay for a cleaner
Young millennials are more than happy to shell out higher price premiums for luxury facilities in rental properties, according to research by Knight Frank.
Their latest Tenant Survey showed that young professionals aged between 25 and 34 make up the largest proportion of households in the private rental sector with saving for a deposit the most common reason given for renting.
Termed ‘iGens’, defined as under 25s in their first job or recent graduates, 64 per cent believed they would still be renting in three years.
In their natual urban environment scoffing down avocado toast at every possible opportunity, iGens spend typically less than 50 per cent on renting a one bed apartment whilst they save for a deposit (and throw away the rest on coffee).
Flatsharing has become common amongst young people in the capital where property prices are typically higher than elsewhere, with 26 per cent of private rental households made up of flat sharers in London compared to 12 per cent elsewhere in England and Wales.
Most of those within the PRS earn between £1,000 and £2,000 a month, with 35 per cent of Londoners spending over 50 per cent of their income on rent. According to another report by CBRE, over half of millennials’ disposable income is spent on leisure and non-essential items.
However, some iGens are willing to put aside their penchant for avo and flat whites to pay a premium for luxuries in their rental properties say Knight Frank, with 26 per cent considering paying more for a technology lounge, 53 per cent for communal outdoor space, 63 per cent of higher earning under 25s willing to pay for cleaning and 71 per cent for an on-site gym.
56 per cent of those iGens on average incomes would consider paying more for an on-site swimming pool, over half would pay more for en-suites and the majority would pay more for a fully furnished property.
Young people are clearly more content to use public transport however, with just one in ten saying they would pay a premium for car pooling and one in four for a parking space.
So just where are these top of the range rental properties complete with pools, gyms, roof terraces and hipster cafes on site in north London, and are they really affordable?
Hackney’s Monohaus scheme offers 47 warehouse-style flats along with a vinyl shop and Nordic café. With sale prices from £500,000, it’s a higher end millennial audience Monohaus is after.
For higher earning young iGens and under 34s, a two bedroom flat suitable for sharers or a couple in Highbury N5 is on the market with Portico for £500 per week and features a patio garden.
For those willing to stump up more, a one bedroom flat in Islington asks more of a single tenant at £295 per week but offers a residents gym, off street parking and private garden.
For a swimming pool, a two bed new build in Canfield Gardens, West Hampstead will set sharers back 420 per week.
The Plimsoll Building in King’s Cross offers luxurious facilities including an on-site gym, residents’ lounge and communal gardens. A studio apartment is currently on the market for a hefty £2,058 per month with JLL London.
Millionaire millennials will have to cross the pond, where Manhattan’s 196 Orchard offers high-end gym chain Equinox and price tags starting at £1.075 million, all marketed via Instagram, naturally.
Richard Bryce, joint head of department at Aston Chase comments that on luxury offerings, it’s all about location, location, location. “I would say that for both young renters in their twenties and for the baby boomer generation the key criteria for luxury property will always be location,” he said.
“The younger Tenant may consider a more bohemian and busy cosmopolitan location but in both cases and almost regardless as to the tenant demographic high quality interiors with on-site facilities such as swimming pool/gymnasium, a concierge service, and designated parking would always be preferred.
“For those properties offering these facilities, especially new build schemes, without a previous occupier a rental premium will certainly be payable.”
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