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The majority of private tenants renting in the UK are not interested purchasing a property in the near future.
According to new research from buy to let focused marketplace lender, Landbay, only 42 per cent of private tenants are interested in getting on the property ladder in the near future.
Older private tenants are the least interested in buying a home. Only 13 per cent of over 55s are interested in buying a home in the near future. Less than half (46 per cent) of those 35-44 are interested, whilst millennials (aged 25-34) are leading the charge for home ownership, with almost two thirds (64 per cent) keen to buy soon.
There is also a notable gender discrepancy. 47 per cent of women are keen to buy a home, compared to just 34 per cent of men. Women who want to buy are more likely than men to want to invest their money rather than pay rent (48 per cent vs 39 per cent) and make decorating decisions (20 per cent vs 14 per cent), while male would-be buyers are keen to have a connection to the local area (8 per cent vs 4 per cent) and have more space (25 per cent vs 24 per cent).
The number of private tenants planning to buy is highest in London, at 48 per cent, and Northern Ireland at 47 per cent. Those in the South West and Wales are least likely, both coming in at 37 per cent. This is especially surprising given the relatively low house prices in these areas.
A quarter (25 per cent) of private tenants without home ownership aspirations say the flexibility of renting proves too tempting to resist. 6 per cent attribute their plan to move to a new country, and 5 per cent plan to move to a new city or a new job.
John Goodall, CEO, Landbay commented: ‘This research suggests the UK’s enthusiasm for homeownership may be waning. Conversations around the private rental sector often assume the bulk of renters are simply biding their time until they can buy a house. 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.
‘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.’