Most tenants don’t want to buy a home in the near future, study suggests
The majority of the tenants in the UK’s private rented don’t want to buy a home, with only 42% of private tenants interested in getting on the ladder in the near future, according to new research.
The study from buy to let lender Landbay delves into the psyche of 2,000 private renters in the UK, offering insight to landlords on the wants and needs of their tenants.
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 while 46% of those 35-44 are interested, and 64% of those aged 25 to 34 are keen to buy in the near future.
There is also a notable gender discrepancy. Some 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 at 48% vs 39% while male would-be buyers are keen to have a connection to the local area.
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%. The firm says that this is especially surprising given the relatively low house prices in these areas.
For those who aren’t interested in buying, the flexibility of renting shines through as a positive. Some 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.
‘This research suggests the UK’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,’ said John Goodall, chief executive officer of Landbay.
‘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. It’s crucial that investment in the private rental sector becomes a priority. The Government must focus on encouraging purpose-built rental properties and cease its penalisation of landlords,’ he added.