British landlords enjoy exceptionally high tenant demand as nine in ten renters cannot afford to buy their own homes
New research from Property Let By Us claims that more than 90 per cent of those living in rented accommodation see increasing property prices and rental charges as a barrier to purchasing their own homes.
While just 7.5 per cent of those questioned believe they will own a home in the future, the survey paints a positive picture for landlords as tenant demand looks set to remain high.
Supporting rented accommodation
Jane Morris, Director of Property Let By Us, explained that more people are choosing to become long-term renters as home ownership becomes less viable.
“In eight local authority districts across the UK, the increase in house prices over the last two years has outstripped the amount someone would have typically earned over the period by more than £80,000,” she explained.
As a result, demand in the rental sector has grown substantially, providing landlords and buy to let investors with a steady stream of tenants for their properties.
These conditions have strengthened the rental market in the past few years as raising a deposit became more difficult; just as individuals saved enough money house prices rose again and forced them to look for more cash.
This trend has been supported by numerous other reports too.
A study into home ownership by Spareroom.co.uk in December found that 18 per cent of renters thought they’d never own a home while ARLA reported a rise in demand for rental properties this year.
Figures from the English Housing Survey suggest the number of privately rented properties has doubled in the last ten years while many renters thought would take them the best part of a decade to raise the necessary funds, providing landlords with consistent income for the considerable future.
The study also showcased that many people are opting for rental properties over home ownership due to the flexibility it offers regarding lifestyles and jobs.
A significant number still thought home ownership was unaffordable but claimed they were in the rental sector out of personal choice rather than necessity.