Generation Rent are more reliant than ever on the PRS

by Property 118

4 months ago

Generation Rent are more reliant than ever on the PRS

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Generation Rent are more reliant than ever on the PRS

A survey carried out by LetBritain of 2000 UK adults shows that 39% are financial unable to purchase the home they would like and are reliant on the Private Rental Sector (PRS) to meet their needs.

In London this jumps to a whopping 49% who are unable to purchase, because of the disparity in house prices.

In a bizarre twist opposed to government policy, 27% of adults renting said they were looking to purchase a Buy to Let property to get on the housing ladder. In London 42% of renters said they would consider purchasing a Buy to Let in more affordable areas of the country.

61% of those surveyed said they blamed the government for not doing enough to help Generation Rent and 64% said they could only see the situation getting worse in the next five years.

LetBritain CEO, Fareed Nabir, added “With more and more people across the UK coming to rely on the private rental sector, the results of the research are concerning. Whilst many renters are working hard to enter the property market, they clearly do not feel the government understands the issues faced by tenants.”

“Interestingly, the findings show that Generation Rent is now increasingly looking to buy properties outside of their chosen place of residence so they can still get onto the property ladder without having to sacrifice the location or quality of the property they wish to live in.”

Comments

Mandy Thomson

4 months ago

Where individuals are concerned, I have often suggested BTL property as a means of getting onto the property ladder.

However, it's not simply about being a property investor; if you let property, you are also a landlord - even if you use an agent - and you need to be aware of your legal responsibilities first. Also, investors need to beware of property that is particularly cheap - it is usually cheap because the area is depressed, meaning the property may not generate sufficient capital, rents will be too low to generate sufficient income and the area may only attract more challenging tenants.

Using an agent might mitigate some of this but many agents, even well known high street names, can be worse than useless.

Having said that, there are many areas worth investing in outside the SE and many really good agents, but anyone thinking of buying to let must do their homework first!

Charlotte Walker

4 months ago

That's great, 61% can purchase the home that they would like, and over half in London! I don't know what they are worried about. Not being prepared to sacrifice location or type of property that they live in says a lot. 30 years ago it was not so different, most of my peer group moved to cheaper areas to achieve home ownership, sacrificing career progression or choice to settle somewhere, others stayed in London and raised kids in cramped conditions despite bigger salaries.

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