A new investigation has revealed that a generation could be priced out of the housing market, with homeownership levels set to slide further out of reach for younger people.
The survey of 2,000 UK adults from LetBritain indicates that 39% of UK adults lack the sufficient finances required in order to obtain the type of property that they currently want. As a result, they are forced into the rental market.
For those in London, this figure rises to 49%.
The majority of renters questioned said that they blame the Government for not showing enough support to their efforts to get onto the property ladder. 61% said they felt the Government wasn’t doing enough to support Generation Rent, with 64% saying that they feel life will get worse for renters during the next five years.
In order to combat this, 27% of tenants said that they have plans to invest in the buy-to-let sector, by investing in a cheaper property in an alternative location from where they wish to live.
This was particularly common amongst Londoners, with 42% of people in the capital stating they would buy a property in another part of the UK, in order to benefit from another rental income.
More people coming to rely on private rental sector
Fareed Nabir, CEO of LetBritain, observed: ‘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,’ Nabir added.