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Over Half of Private Tenants Believe they will Never Own a Home
This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.
Over half of private tenants in the UK believe they will never own their own home, according to a worrying new survey.
As house prices continue to rise in some parts of the country, private tenants often consider saving for a deposit to be the greatest barrier to getting onto the property ladder.
Over Half of Private Tenants Believe they will Never Own a Home
The study, conducted by property investment consultancy Knight Knox, found that less than a quarter (23%) of private tenants are currently saving for a deposit, with many renters having little hope of affording a deposit for their own home, unless their circumstances change dramatically.
The survey, which polled 2,000 private tenants across the UK, suggests an acceptance among those living in the private rental sector that owning a home will remain unattainable, believes Andy Phillips, the Commercial Director of Knight Knox.
He explains: “With rising house prices and stagnant salaries, it appears that many people currently renting have come to terms with the idea that they’ll never own a home and now accept renting as a viable option in the long-term.
“We’ve grown up in this country with the notion that you must settle down and buy a house, but, due to numerous factors, that’s not as much of a reality as it once was, and we’re starting to see the stigma traditionally attached to renting dissolve.”
He adds: “The reducing number of people saving for a deposit could mean we’re seeing a shift towards a private rental sector-centric property landscape, similar to that which has long been a way of life in Germany and wider continental Europe.”
In support of Phillips’ views, 61% of private tenants said they were content to rent, claiming that renting suits their lifestyles, and they do not want to be tied down to one property or a lengthy mortgage contract.
Phillips agrees: “The traditional model of homeownership doesn’t suit everyone’s lifestyle, and whether it’s the best way forward is being called into question.
“Meanwhile, the private rental sector is increasingly being seen as an essential solution to the lack of housing available, with rented homes expected to account for over seven million homes in the UK by 2025.”
The survey’s findings are good news for landlords, who can rest assured that demand from private tenants will remain high in the long-term, despite fears that investing in buy-to-let may not be as lucrative as it once was.
