Modern tenants ‘rent for life’
Wednesday, 9th June 2010
Almost a third of current UK tenants believe they will never purchase a home and will rent for the rest of their lives, current research suggests.
A survey of 1,326 tenants by an online flat and house share website found that 33% of people currently renting a property feel that house prices will always be too high to jump on the steep property ladder.
Most tenants surveyed have resigned themselves to a relatively long wait without their own home. Almost two-thirds, 65%, think it will be more than five years, or at least until the next General Election, before they are in a position to purchase their own home outright.
However, more than three quarters, 77%, of those surveyed believe house prices will fall by more than 5% in the next 12 months, with 31% expecting house prices to fall by more than 10% over the course of the next year.
While 89% of flat sharers claim they chose the situation because they cannot afford to buy their own home, 52% of tenants say they would happily live in rented property for the rest of their lives.
Matt Hutchinson, Director of site rental listings site Spareroom.co.uk claims that, despite government measures to try and bring first time buyers in the market, the reality is prices are just too punishing for a high percentage of tenants.
“It’s quite something when a third of renters can never see themselves being in a position to buy,” said Mr Hutchinson. “Even though another fall in property prices would be good news for thousands of first-time buyers, it appears that many have still resigned themselves to a long wait before they are in a position to buy, even if prices do drop.”
“What’s interesting is that more and more young people are becoming comfortable with the idea of renting long-term or even for life. Those waiting for the market to get back to ’normal’ might be in for a long wait, and that means many more years of renting in the meantime.”
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