‘Hutching up’, which involves young people squeezing into smaller accommodation to meet soaring rental costs is no longer just a London trend, according to The Mistoria Group, leading student property investment specialists.
What does Hutching up mean?
Across many cities in the UK, flats, houses and HMOs are filled with young people who can only afford to live independently if they share accommodation and squeeze into small rooms with affordable rental charges. Mistoria the HMO letting agents specialist has seen a 15% rise in the number of young professionals in the North East, renting self-contained rooms in HMOs to save money, over the last 12 months.
The cost of renting a home in the UK has reached an all-time high, according to recent research. Tenants are paying an average of £811 monthly rent, according to the HomeLet Rental Index for June, representing a 3% rise on the previous month and a 5.1% increase on a year earlier. The figure represents the highest average UK rental amount on record, as eight of the 12 regions tracked by the survey saw average rents rise last month.
Mish Liyanage, Managing Director of The Mistoria Group comments: “Many young people are finding it prohibitive to rent on their own and there is certainly a growing trend of flat and house sharing amongst young professionals. Whilst sharing accommodation has been the domain of students for many years, many graduates are finding that they can’t afford to live independently. Having stayed in a good quality HMO as a student, not surprisingly graduates see no reason to change when they faced with a huge hike in rental costs.
“While many young people dream of having a place of their own, the fact it is that many have to live in over-crowded accommodation. We have seen lots of young professionals take on our student lets – mainly a room in a HMO, with a shared kitchen and sitting room. They are finished to a very high standard and require just £80-£110 a week, including all bills and require just a £200 deposit and £100 admin fee per tenant.”
“The quality of HMO accommodation has improved dramatically over the last few years. Young professionals are very discerning and large flat screen TVs, leather furniture, high speed broadband and en-suites are all quite standard now. Landlords can no longer cram as many people in as possible to maximise rental income. A property with three medium/large rooms finished to a very high spec will easily rent for £80-110 per week, compared with four small rooms with a poor spec at £65-75 per week.”
“Many young professionals ask themselves, is it better to share a house in the right part of town close to work and leisure facilities, than rent a flat in a less desirable but more affordable out of town.”
“Location? For many, not having to set up electric, gas, broadband and TV accounts or pay council tax and find £000’s in deposit and the month’s rent, is a massive thumbs up for their wallets. Having the luxury of being able to budget, without having fluctuating monthly bills, has all contributed to the rise of hutching.”
For further information, please visit www.mistoriagroup.com or call 0800 500 3015.