Podcast Summary
Generation Rent's preference for city and town centers: 91% of Generation Rent wants to live in city and town centers, creating opportunities for redeveloping retail spaces and driving up standards for renters
The trend of Generation Rent preferring to live in city and town centers is reshaping the UK property market. According to recent research, 91% of this demographic wants to live in these areas, presenting opportunities for redeveloping empty retail spaces into residential or other appealing uses. This shift also has the potential to drive up standards and offer more choices for renters, as affluent renters are willing to spend money for good experiences. Companies are also entering the sector to provide these experiences. This trend, as discussed on The Prophecy Podcast in episode 315, is good news for the high street and opens up interesting opportunities for property investors.
City center living on the rise in UK cities: Millennials are driving the trend towards city center living due to regeneration efforts, employment opportunities, and convenience factors.
City center living in the UK has experienced significant growth in recent decades, particularly in cities like Birmingham and Liverpool, due to a combination of regeneration efforts by local authorities and private developers, as well as the increasing number of employment opportunities and convenience factors that city centers offer. This trend is driven largely by the millennial population, who comprise half of some city center populations. The reasons for this shift include the revitalization of city centers through large-scale regeneration projects, the relocation of businesses into city centers, and the convenience of living in areas with easy access to work, gyms, and other amenities. This trend is expected to continue, as more and more people are drawn to the benefits of city center living.
City center living: Prioritizing convenience over space: City center living prioritizes convenience, leading to population growth and changing real estate trends, with potential for future demand shifts.
City center living, with its convenience and easy access to technology-driven services, has become a priority for many people. This shift in priorities, driven by changing demographics and lifestyles, has led to an increase in population growth in city centers. Convenience is now valued more than space, and people are willing to live in smaller homes if it means being close to everything they need. This trend is not just limited to young people, but is a general shift in what matters to people due to the increasing opportunities available. As a result, there is a significant impact on supply and demand in city centers, and it is unlikely that this trend will reverse anytime soon. However, there have been concerns about oversupply in some cities, but as the trend ages upwards, it could lead to a higher demand for larger units, including those for families.
City center living in the UK: A desirable trend with rising costs: City center living in the UK is becoming more expensive due to high demand for high-end accommodation, limited land availability, and superior amenities and facilities.
City center living in the UK is becoming increasingly appealing due to advancements in technology, completed facilities and regeneration projects, and the type of accommodation available. Manchester, in particular, is experiencing a surge in demand for high-end accommodation, leading to rising rents and a supply and demand challenge. Despite the construction of new apartments, the lack of available land in the city center exacerbates this issue. A notable shift in perspective came from a conversation with Tom Bloxon, who pointed out that it's usually more expensive to live in the center of a city in Europe, but in most UK cities, it's actually cheaper. Tom predicts that this trend will reverse, making city centers more expensive to live in due to their superior amenities and facilities.
Trend of Build to Rent properties in city centers for pension companies: Investors should focus on city center Build to Rent properties with superior facilities and competitive specifications to compete with pension companies, while avoiding outdated apartments in less desirable areas.
The rental market in city centers is undergoing a significant transformation, with a trend towards Build to Rent properties being developed primarily for pension companies. These apartments come with added facilities like concierge, gyms, swimming pools, and tech integration. This means that property prices in city centers could see substantial growth, but investors need to be cautious and avoid buying on the outskirts of city centers in less desirable areas or outdated apartments that don't offer competitive specifications or facilities. The PRS market is not yet dominating, but investors will need to up their game to compete with pension companies. This trend has already been seen in the student rental market, where purpose-built accommodation with superior facilities has become increasingly popular.
Student Housing Market Shifts Towards Higher Quality: The student housing market is evolving towards better quality accommodation, leading to decreasing rents for poorer properties and increased demand for improved amenities and furnishings.
The student housing market, particularly in city centers, is undergoing a long-term transformation towards higher quality accommodation. Rents for poorer quality properties have been decreasing, leading students to raise their standards and invest in better furnishings and amenities. This trend, which has been ongoing for over a decade, is not a cause for concern for property investors as there will always be demand for various types of properties. However, being aware of this trend can provide an advantage, as early adoption can lead to future success. This trend, along with others discussed in the podcast and magazine article, makes city centers an attractive investment option for the long term. It's important to note that this trend does not only apply to city centers but also to town centers. The podcast and magazine article provide more in-depth information on this topic, and subscribing to the Property Hub magazine will give you access to the back catalog. Despite the potential challenges and setbacks, the property investment community remains supportive and positive, as evidenced by the great feedback received after sharing past experiences.
Sharing mistakes and experiences in business and life: Learning from failures and setbacks is crucial for growth. Authentic and honest podcasts like 'Petra and Ali' offer valuable insights and encourage listeners to find balance in their daily lives.
Failure and setbacks are an inherent part of business and life, and it's important to acknowledge and learn from them. The hosts of the podcast, Petra and Ali, emphasized the importance of sharing their mistakes and experiences, as it helps listeners feel less alone in their own struggles and encourages growth. They also introduced an app called Gojauntly, which helps users find walks in their area, promoting the importance of balancing urban living with nature. The podcast's authenticity and honesty about the realities of business resonated with listeners, making it the best and most helpful they've ever listened to. The hosts' transparency about their mistakes and setbacks also served as a reminder that everyone makes mistakes and that it's essential to learn from them. The podcast's content is backed up by a weekly Hub Extra email, providing additional resources and tools for subscribers. Overall, the podcast offers valuable insights into business and life, encouraging listeners to learn from mistakes and find balance in their daily lives.
Discover walking routes with the ViewRanger app: The ViewRanger app helps navigate walking routes with user-generated photos and is free to download, making new explorations more accessible and enjoyable
The "ViewRanger" app is a valuable tool for avid walkers. This app offers navigational assistance by providing users with pictures of the walking routes taken by previous users. It's particularly helpful for those who may find it challenging to navigate using a map on their phone, especially in the countryside or when signal is lost. The app is free to download and is a must-have for those who enjoy walking. The community-built app has made exploring new walking routes more accessible and enjoyable. For those new to Property Hub, they offer various services and free education. Join their discovery tour to learn more, and don't forget to tune in for Ask Robin Rob on Tuesdays.
