Figures released today from the Government’s English Housing Survey show a 14% increase in private renters aged 25-34 in 2012-13, compared to 2008-09.
Figures released today from the Government’s English Housing Survey show a 14% increase in private renters aged 25-34 in 2012-13, compared to 2008-09.
The findings also report that there has been a decline in the proportion of younger mortgagors (aged less than 35), from 21% to 18% in the same period, and that renters now tend to spend proportionally more of their income on housing costs compared to owner occupiers on mortgages.
While many are blaming the rise of the buy-to-let market on stopping young adults from getting onto the property ladder, Steve Bolton, Founder and Chairman of Platinum Property Partners, believes it’s a lifestyle choice for some people:
“It is no surprise that these figures show a rise in young private renters. Recent research suggests that the English love affair with homeownership could be showing signs of ending.
“Halifax and the National Centre for Social Research reported that 36 per cent of 23 to 27 year olds think the nation should lose its obsession with homeownership. Indeed, one in five have no desire to own a home and 48 per cent agree Britain will become a nation of renters within the next generation. This has been caused by several factors, not least of which is a more mobile workforce, affordability and changing attitudes.
“However, the latest figures from the DCLG English Housing Survey also suggests that private renters spend more of their income on rent compared to what owner occupiers spend on their mortgages. This is not surprising given the current low interest rates, but the findings are an average and do not account for the fact that some owner occupiers will have very small loan-to-value mortgages.
“What this means for those private renters who still have a desire to get onto the property ladder, is that they not only need an increasing choice of buy-to-let properties to live in now, but affordable options that could help them save towards a deposit for the future.
“It is therefore vital for landlords to continue investing and supplying high quality, but affordable rented properties, such as Houses in Multiple Occupation. Tenants living in PPP properties are paying, on average, £500 per month including bills for premium accommodation.”
