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Almost half of the people in the UK who do not own a property expect to rent for life according to new research.
The survey of 2,016 people by Fidelity International has shown that 45 per cent of people who don’t yet own a property think they never will.
With ever rising property prices, people are more prepared than ever to face the fact that they may be renting for life.
Marking good news for buy to let property investors, it looks like the private rental sector is very much here to stay, and likely to only get larger as people look to rent longer term, and maybe for life.
While 65 per cent of those under 34 are more optimistic about their chances of owning a home in the future, that drops significantly when people are between the ages of 35 and 54 when only 23 per cent of people feel the same way.
The biggest reason cited for not feeling prepared to buy a property is the financial implications of doing so, with 40 per cent saying they don’t feel financially prepared to buy a property in the future, and therefore may rent for life.
The increasing cost of buying a home means that 54 per cent of 33-54-year olds have never owned a property, and the average age of a first-time buyer has risen from 31 to 33 over the past decade.
The rise of the Artful Lodger – the 34 per cent of adults aged 18-34 who live with their parents – is one outcome of rising prices. Another is the number of people continuing to rent, with 41 per cent of those aged 34-54 and nearly a quarter (24 per cent) of over 55s doing so.
Tom Stevenson, Investment Director for Personal Investing at Fidelity International, commented: ‘Despite the challenge that house price rises present, home ownership remains an aspiration for 14 per cent of 34-54-year olds. Interestingly, a tenth (10 per cent) of over 55s share this goal, but 81 per cent of that age group who don’t own a home think it is unlikely they ever will.’