Demand for rented properties higher than ever

Demand for rented properties higher than ever

0:01 AM, 22nd August 2023, About 10 months ago

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A major shortage in rental properties leaves tenants struggling to get on the property ladder, according to a new survey.

A survey of 600 tenants by estate agents HOP reveals more than 70% of respondents want to own their own home, but for three-quarters of these not having a sufficient deposit is holding them back.

According to the report, most tenants expect to buy in their 30s, with 41% saying they will be aged between 32 and 39 when they take their first step onto the property ladder, followed by 27% who believe they will be in their 40s.

Tenants facing difficult choices

However, 71% of tenants surveyed said they will stay in their current home for the foreseeable future and 12% have already lived there longer than they planned to.

Luke Gidney, managing director from HOP, said this is because many rented properties are not available and rising rents make moving a financial risk.

He added: “Although it’s no secret that the majority of tenants currently renting properties would like to buy their own homes, our survey also revealed that a quarter are happy renting and have no desire to buy.

“Most said it was the fact they could move quickly if their circumstances changed, as well as not having to worry about repairs and maintenance, that made renting preferable to buying.

“However, many tenants are facing difficult choices and are resigned to the fact that moving to a new rental property can be a challenge due to the shortage of available homes in the PRS, which has driven rents up by approximately 10% in West Yorkshire in the past 12 months alone.”

Landlords leaving the sector

Mr Gidney said demand for rental properties is higher than ever due to landlords leaving the sector.

“Huge numbers of landlords are selling investment properties, due to legislation, red tape and tax changes.

“We’re now in a position where demand for rental property is higher than it’s ever been and tenants are bearing the brunt of this, competing for available properties and having to pay record rents. It’s a horrible situation that’s only going to get worse unless action is taken to stem the landlord exodus.”

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