Renters Repress Desires To Purchase Property In Near Future

Renters Repress Desires To Purchase Property In Near Future

Whilst many assume that those renting property are simply biding their time until they have saved enough for a housing deposit, the fact remains that the majority feel resigned to permanently living in rental accommodation.

According to survey data from over 2,000 tenants renting in the UK, 58% do not intend to buy a property in the next two years.

Whilst the majority of those renting attributed this sentiment to affordability restraints, others suggested that renting is becoming a cultural norm and the property sector should become more accommodating when it comes to this shifting trend.

Over a quarter of those renting a property believe that buying, and the various financial implications involved, provides a lack of flexibility making the concept less appealing. 6% have also stated that moving to a new country has prevented them from committing to property ownership whilst 5% have delayed due to moving jobs or cities.

However, for many, the dream of home ownership is placed out of reach because the average household income is struggling to save up enough to buy.

Although 64% of millennials aged up to 34-years-old feel determined to buy a property of their own, this figure reduces to just 13% with renters aged over 55.

According to Halifax, rising house prices over the past decade have left First Time Buyers (FTB) scrambling around to find additional funds after the average UK home deposit has increased by 52% since 2009.

The average deposit for a household buying a property for the first time is now £41,099. This figure represents just under a fifth (18%) of the overall asking price and highlights the difficulty in getting on the property ladder.

Many are calling for more affordable rents and sustainable rent to buy schemes to increase over the next few years to ensure tenants have access to attractive and ample housing stock.

John Goodall, Landbay Chief Executive, said:

“This research suggests the UK’s enthusiasm for home ownership may be waning. Conversations around the private rental sector often assume the bulk of renters are simply biding their time until they can buy a house.

“However, the changing face of employment and a thirst for flexible living mean renting is more attractive than ever, and landlords should reflect this in their interactions with tenants.

“It is crucial that investment in the private rental sector becomes a priority. What use is Labour’s ‘right to buy’ policy if renters have no interest in doing so?

“Instead the Government must focus on encouraging purpose-built rental properties and cease its penalisation of landlords.”

What needs to be done to ensure more rental properties are available for the growing number of people in need of privately rented accommodation?

Martin Parrin

Martin is a Senior Content Writer for Today’s Conveyancer, Today’s Wills and Probate, Today’s Legal Cyber Risk and Today's Family Lawyer Having qualified as a teacher, Martin previously worked as a Secondary English Teacher that responsible for Head of Communications. After recently returning to the North West from Guernsey in the Channel Islands, Martin has left teaching to start a career in writing and pursue his lifelong passion with the written word.

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