Home Residential PropertyBuy-To-LetMajority of private tenants happy to remain in rented accommodation

Majority of private tenants happy to remain in rented accommodation

by LLP Reporter
23rd Sep 19 2:30 pm

Buy-to-let focussed marketplace lender, Landbay, has been crunching the numbers and found that just 42% of tenants are interested in buying in the near future.

According to a study of 2,000 private renters in the UK, older renters are the least interested in buying a home. Only 13% of over 55s are interested in buying a home in the near future. Less than half (46%) of those 35 to 44 are interested, whilst millennials (aged 25 to 34) are leading the charge for home ownership, with almost two thirds (64%) keen to buy in the near future.

There is also a notable gender discrepancy. 47% of women are keen to buy a home, compared to just 34% of men. Women who want to buy are more likely than men to want to invest their money rather than pay rent (48% vs 39%) and make decorating decisions (20% vs 14%), while male would-be buyers are keen to have a connection to the local area (8% vs 4%) and have more space (25% vs 24%).

The number of people planning to buy is highest in London, at 48%, and Northern Ireland at 47%. Those in the South West and Wales are least likely, both coming in at 37%. This is especially surprising given the relatively low house prices in these areas.

For those who arenโ€™t interested in buying, the flexibility of renting shines through as a positive. A quarter (25%) of renters without home ownership aspirations say the flexibility of renting proves too tempting to resist. 6% attribute their plan to move to a new country, and 5% plan to move to a new city or a new job.

John Goodall, CEO, Landbay said, โ€œThis research suggests the UKโ€™s enthusiasm for homeownership 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.

“Itโ€™s crucial that investment in the private rental sector becomes a priority. What use is Labourโ€™s โ€˜right to buyโ€™ 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.โ€

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