Number of tenants on the rise – so does that mean fewer buyers?
New research by a prominent estate agent has found that the number of households having to rent rather than own is set to rise by over 20 per cent over the next five years.
In days gone by, choosing to rent a property over buying a home was a preference for many for a variety of reasons. For some, a hectic work life that demanded constant relocation made home ownership impossible. For others, it allowed them to live in areas within which they could not afford to buy.
In the present day, renting a home has begun to carry a certain stigma once a tenant is past a certain age. With a great focus on acquiring the wealth to put down a deposit, many renters around the country have a pessimistic view with regards to the future and the likelihood of ever owning a house.
Due to the ever-widening margin between property prices and wage increases, it is harder than ever to save for a deposit without help from the bank of mum and dad – and according to new research by estate agent Knight Frank, the situation is only getting worse.
The agency has found that the number of households renting from a private landlord is due to increase from its current number of 5 million, up to 5.79 by 2021.
Of the 10,000 tenants questioned, a third surprisingly still rented their home out of choice, however, the larger proportion were planning on saving for a house themselves. Experts believe that in areas such as the capital, the ability to rent has allowed tenants to stay with a reasonable distance of their place of work – without having to secure an unaffordable mortgage.
Unfortunately, the new survey illustrates how government efforts to encourage people to join the property ladder are unlikely to have much impact in the near future – and with new-build construction at its lowest point in decades, it appears there is great reason for concern.
For a market that survives on consumer confidence, the more people who give up on their dream of home ownership, the greater the likelihood for a slowdown in the industry and ultimately the nation’s economy. As more middle-age and elderly individuals also find themselves stuck in the rental sector, those homeowners looking to sell their house fast will be facing an uphill battle to ensure that potential buyers with the necessary funds direct their attention towards the former’s property.
Need to sell but can’t find a buyer? Why not ask National Homebuyers for advice, as we buy any house. Call 08000 443 911 or request a call back to find out how much you could get for your property.