Three Financial Tips for Generation Rent

There have been many pernicious factors heightening the economic pain of the UK’s young adults. One of the most troublesome issues that they currently face is the cost of housing.

Both the financial crisis and the recession hit the aspirational age group harder than any other. As their real incomes dropped, housing costs began to soar. This has caused two serious interrelated issues: a rise in the amount of young adults still living at home; and “generation rent” – young people aged up to 35 who are unable to get on the property ladder.

The Tories are promising to build 200,000 cut-price homes exclusively for the under 40s to help young people move out. But construction and crane hire experts Emerson Crane Hire have pointed out that the developers involved will not have to face the Section 106 obligation (an affordable housing obligation that costs builders an average of £15,000 per home) – meaning the houses might not be that affordable.

In the absence of affordable housing, many simply have to persevere with the rising cost of rent. Rent alone is responsible for over half of the average Londoner’s income.

While we wait for the verdict on housing to be addressed in May’s general election, here are three financial tips to help generation rent save their precious funds.

Property guardians

The financial crisis and recession has also had disastrous effects on UK businesses. During the worst of the recession, the government was raising more money than ever through empty business rates. Effectively, struggling businesses were being fined for owning vacant property (as though they were choosing to keep the property empty).

Interestingly, businesses with vacant property and people struggling to pay rent could help each other save money.

Vacant property specialists like Oaksure Property Protection ensure that businesses circumnavigate the issue of expensive empty business rates by turning their empty premises into accommodation for property guardians. At the same time, property guardians can enjoy living in the most desirable locations at a fraction of the cost.

Oaksure Property Protection say that it is important to note that the screening process for property guardians is particularly rigorous. After all, being a property guardian is a very serious role: guards have to report on regular patrols and maintenance checks, make sure the property is kept in good order and ensure that the space is not abused.

Always get your deposit back

There seems to be an unfair trend in the world of property that gives preferential treatment to the landlord. You would expect, or hope, that this wouldn’t be the case. But thanks to mortgage lenders who used to reduce the rates for buy-to-let loans, We Buy Any Home say the property market is rife with those who have invested in order to gain from inflated rent and house prices.

Even though rent is at an all-time high, large deposits are still mandatory – and an unpleasant tendency has emerged where landlords have taken the deposit as a bonus, not a promise.

Not all landlords are dishonest, but many seem to be aware that the law tends to favour them in the event of a deposit dispute. If a tenant is falsely accused of damaging a property for example, it could take them around three months to get their money back. Not only does this waste precious time but it could cost money too.

Sadly, sums like £1,500 could be all-too-easily forgotten about because tenants aren’t prepared to go through drawn-out arbitration processes. Don’t allow this to happen.

Be prepared to fight your case. Take photos the day you move in and set aside a few hours to carefully log, photograph and then write up any issues you encounter – from chipped oven doors to dust under the bed and discoloured mattresses – bring all of it to the attention of the landlord before you’ve settled in. Also be sure to take photos on your last day that shows how neat, clean and tidy the property was when you left.

Furnish for free

The cost of furnishing a home on top of rent can push most salaries to the limit. In some cases, people will simply go without basic furnishings or white goods.

Fortunately, there are various web communities, like Freegle, for exchanging, giving or receiving free appliances and pieces of furniture. Covering vast portions of the UK, you can find one in your local area and make savings on items as diverse as TVs, washing machines and sofas.

The benefit for the people donating is that they can forgo the usual options of dumping in landfill, or hoping to sell online. Also, having established a positive relationship with the people who receive their goods, they can hope for something back further down the line.

For those who worry about the quality of the items that tend to get moved through such communities, these sites are often used by offices undergoing a clear-out. In these cases, the items can be as good as new.