Recent research has indicated the key reasons why potential buyers are choosing to rent rather than purchase a property.
Analysis from Knight Frank indicated that the proportion of those living in privately rented accommodation had doubled over the last decade, with the trend expected to continue.
Attributed to trends in the economy as well as the labour market, the predicted increase in market size could mean one in four households will be residing in privately rented accommodation.
However, despite the price of home reportedly soaring over the past few years, the survey revealed that not all of those renting are doing so because homeownership is out of financial reach.
The study looked at the factors influencing renters, finding that over a third (37%) are currently living in the sector through personal choice as opposed to homeownership affordability. Key factors driving this preference varied, with the most commonly cited being flexibility, less responsibility, or reduced price when seeking to live in a desired area.
However, for those who were looking to purchase a house, the most commonly cited reason was saving for a deposit, with 30% of respondents claiming that this was the main barrier to them being able to access the property ladder.
The study also indicated that in three years’ time, the proportion of those expecting to be renting will increase.
Rather than seeking to purchase a property, over two thirds (68%) of tenants anticipate that they will be living in the private rented sector.