A study by Landbay, a buy-to-let mortgage lender, discovered just 42% of the UK’s private tenants wanted to buy their own home while the rest preferred the flexibility of renting.
The findings varied according to age and gender. More women than men, said they were keen to get on the housing ladder with 47% of females admitting to plans for homeownership compared to 34% of men.
Landbay’s study also found older renters were the least interested in buying a home, with only 13% of over-55s in the market for their own property.
It was, in fact, the millennials – those aged 25 to 34 – leading the charge for homeownership, with Landbay revealing more than two thirds wanted to take their first steps on the property ladder in the near future. This compared to 46% of those in the 35 to 44 age group.
Why renting is so popular?
It would seem the flexibility of renting is the main reason fewer tenants were rushing into homeownership. A quarter of renters who did not want to buy gave this reason.
But there were others who felt renting was more sensible as they had plans to move abroad or to a new city or job.
Investment in private rental sector
John Goodall, CEO of Landbay, said he thought the UK’s enthusiasm for homeownership may be waning and this made it even more important for investment to be made into the private rental sector.
“Conversations around the private rental sector often assume the bulk of renters are simply biding their time until they can buy a house,” he said.
“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.”
He added: “It’s crucial that investment in the private rental sector becomes a priority. What use is Labour’s ‘right to buy’ policy if renters have no interest in doing so? Instead the Government must focus on encouraging purpose-built rental properties and cease its penalisation of landlords.”
Labour announced proposals, if it won the next general election, to allow tenants to buy their rented properties at discounted prices.
