If you’re wondering what Guppies are (and we’re not talking about fish here) and what they’ve got to do with the property sector, let us explain.
The term ‘Guppies’ refers to tenants in the 18 – 39 age bracket who see themselves staying in the rental market for the long term.
The nickname comes from the phrase ‘Given Up on Property’ because Guppies don’t see home ownership on the cards for them for at least the next decade.
For some, this is because of the high cost of buying a property and the struggle to get a decent deposit together.
But for others, it’s about lifestyle. Some Guppies don’t want to be tied to a 40-year mortgage and the other demands of home ownership, such as repairs and maintenance.
Others in this group would rather rent in an area they love than move further afield to a more affordable (but perhaps less desirable) location.
So, how big is Generation Guppie?
Zoopla estimates that 42% of Brits under 40 who don’t own a property have no plans to do so for at least ten years – hence they’re Guppies.
The property platform also notes that 40% of Guppies earn more than £60,000 annually.
Do Guppies make good tenants?
We wouldn’t be doing our job as letting agents if we didn’t state that all landlords should follow a rigorous tenant selection process (with relevant credit and reference checks).
But given that many Guppies are on good incomes and looking to rent for the long term, they could make ideal tenants.
So, what do Guppies want?
High-standard properties – Guppies seek a place to call home, not stop-gap accommodation. It’s important to them that a property is well-maintained and has a modern interior.
Responsive landlord – Young people (and from our point of view, anyone under 40 falls into this bracket) are tech-savvy and prefer to communicate through channels such as WhatsApp. When they raise an issue, they don’t expect to be waiting days for a response.
Pet-friendly homes – While many in Generation Guppie may not have children, they may want a pet or already be a doting pet owner. Flexibility around the issue of pet ownership will be seen as a real plus.
Upkeep – As we said earlier, for some Guppies, the lure of renting is not having to worry about the cost or stress of repairs and maintenance. This doesn’t mean they don’t care about these things, but they expect the landlord to be diligent and proactive.
For help managing a rental property and sourcing good-quality tenants, contact us at Johnsons today.