70% of renters not planning to buy

by Property 118

A month ago

70% of renters not planning to buy

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70% of renters not planning to buy

Research carried out by Direct Line for Business indicates that the UK may be heading towards a more ‘German’ style of property market with a greater percentage of homes being rented.

From these research figures approximately 70% of the estimated 17 million people renting in the UK do not plan to purchase a property, with 22% citing the associated financial commitment as the reason for them being put off.

The results of the research show that last year, the average price paid by first time buyers was around £207,693, in excess of 50% higher than 5 years ago when a similar property would cost around £138,663 on average.

This suggest many people are not looking to get on the housing ladder and just don’t want the financial commitment of home ownership. While 9% cited a lack of flexibility and a want to have the option to travel and 8% said they didn’t want to be tied to one particular area.

Christina Dimitrov, The business manager at Direct Line for Business said: “The UK housing market continues to change and we are seeing a major attitudinal shift when it comes to renting. While price is a factor, many people are increasingly comfortable with the flexibility afforded by renting a property rather than jumping into home ownership.

“In line with the greater demand for rental properties, the Government has introduced tougher controls and regulation. Recent legislative changes mean landlords have stringent guidelines to adhere to in order to ensure the health and well being of their tenants. It is important that landlords ensure all of their properties are adequately insured to minimise distress to them and their tenants should something go wrong.”



Comments

With an ongoing and neverending increasing demand for rental property, so it's no wonder that our BTL purchase mortgage stats are still robust

And with even more extremely great value 85% LTV mortgages now available, so affording to buy these assets is not as expensive as it used to be either.

All mortgages, including the 85% LTV deals (for Ltd Companies as well as individuals) are available via the Broker Team who can be contacted via my profile link.

Howard.

H B

4 weeks ago

The flipside would be that 30% do intend to buy - 5.2m people - good news for those of us selling up and getting out of the market.


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