Marketing to Renters - UK - June 2016


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Mintel

$ 3555

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With home ownership seemingly on a permanent decline (and the corresponding rise in renting), companies and brands operating in the home and garden sector need to re-think their strategies. This will include positioning products towards rentals and temporary ownership, as well as opening more centrally-located smaller stores for light sprucing-up jobs.

Table of Content

Overview

What you need to know

Executive Summary

The changing rental scene
Figure 1: Household composition, by housing tenure, April 2016
Just a minority of renters are saving for a deposit on a home
Figure 2: Reasons for renting, by age, April 2016
Accommodating renters’ lifestyles
Figure 3: Factors people look for when choosing a property to rent or buy, by housing tenure, April 2016
Urgent need for longer-term tenancies
Figure 4: Renters’ attitudes, April 2016
What we think

Issues and Insights

Guiding young renters towards home ownership
The facts
The implications
Helping renters inject their own personality into their homes
The facts
The implications

The Market – What You Need to Know

Weak supply puts upward pressure on house prices
First-time buyers hit by tighter lending criteria
Demand for rentals booms amongst younger people
Still, Brits aspire to owning a home of their own

Market Drivers

Record number of people in employment
Figure 5: Changes in the number of people in the UK labour market, seasonally adjusted, January to March 2016
Housing market continues growing
Figure 6: Annual house price rates of change, all UK dwellings, January 2004 to February 2016
Figure 7: UK all dwellings annual house price rates of change, country and regions, February 2016
Fewer new homes are being built
Figure 8: Permanent dwellings completed, by tenure, UK, financial years 1979/80 to 2014/15
Increasing deposits paid by first time buyers
Figure 9: Deposit as a percentage of purchase price, by type of buyer, UK, 1988-2013
Changes to stamp duty on buy-to-lets will impact renters
Decreasing proportion of younger home owners…
Figure 10: Percentage of each age group that are owner occupiers, 1981-2013/14
increases demand for rentals
Figure 11: UK households, by size, 2010-20
Figure 12: Dwelling stock, by tenure, UK, 1980 to 2014

The Consumer – What You Need to Know

Changing demographics of renters
Nearly four in 10 homeowners get help with the deposit
Home ownership linked with stability
Renters focus on convenience
Home and garden brands need to increase interest amongst renters
Boosting home pride amongst younger renters

Demographic Overview

Home ownership linked with lifestage
Figure 13: Marital status, by housing tenure, April 2016
Figure 14: Area where people live, by housing tenure, April 2016
Nearly four in 10 got help with the deposit
Figure 15: How people came up with a deposit for their home, by age, April 2016
Figure 16: Who contributed to the deposit, April 2016
Rising proportion of families renting
Figure 17: Household composition, by housing tenure, April 2016
Finances – key driver of home ownership
Figure 18: Current financial situation, by housing tenure, April 2016
The rising cost of renting
Figure 19: Proportion of monthly income going on housing costs, April 2016
Figure 20: Proportion of monthly income going on rental costs, by gender and age, April 2016

Reasons for Renting and Owning a Home

Ownership provides more stability
Figure 21: Reasons for deciding to buy a property, April 2016
Two thirds rent because they cannot afford to buy
Figure 22: Reasons for renting, by age, April 2016

Factors Important When Choosing a Home

Priorities vary by tenure
Figure 23: Factors people look for when choosing a property to rent or buy, by housing tenure, April 2016
Renters focus on convenience
Community living promises a different rental experience
Figure 24: The Collective development in Old Oak, London, May 2016

Lifestyle Changes

Helping renters inject personality into their living space
Figure 25: Selected lifestyle changes compared with a year ago, by housing tenure, April 2016
Figure 26: B&Q’s Help and Advice section, May 2016
Sharing over permanence
DIY stores need to re-focus their efforts

Renters’ Attitudes

Longer tenancies would up the spend by private renters
Figure 27: Renters’ attitudes, by type of rental housing, April 2016
Preparing younger renters for future home ownership
Figure 28: Renters’ attitudes, by age, April 2016

Appendix – Data Sources, Abbreviations and Supporting Information

Data sources
Abbreviations
Definitions
Generations

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