The research showed that one in four (26%) people in the UK live in rented accommodation, and although two thirds (67%) of tenants rent because they cannot afford to buy, there are other significant factors driving the rental market.
With the average house price standing at over £184, 593, the findings show that beyond house prices there are other key lifestyle factors influencing people’s decision to live in rented accommodation. The findings show almost one in six (13%) of today’s ‘renters’ no longer aspire to own their own house, and a further 12% choose to rent in order to enjoy the greater flexibility it offers.
In addition, the findings also show that far from doing anything to get a foot on the property ladder, 12% of Britons would prefer to rent in their ideal area, rather than own a property elsewhere.
As part of an ongoing study of the specialist mortgage market, Birmingham Midshires asked a representative sample of 2,000 people whether they currently owned their own home and, if not, what influenced their decision to rent.
The rental market explained:
As many as 18% of singletons choose to rent because they like the flexibility that renting provides.
Almost eight in ten (79%) single parent families living in rented accommodation do so because they cannot afford a mortgage.
Almost one in six (14%) married couples with children choose to live in a rented property, believing their existing unsecured debts will prevent them for getting a mortgage.
One in five (18%) childless, married couples chooses to rent because they cannot afford to buy in the area.
Regional Findings:
Nearly three-quarters (73%) of people living in rented accommodation in London are doing so because they cannot afford to buy a property. A good area is key for 19% of people in the capital who would rather rent in a dream area than buy elsewhere.
North of the border, nearly two-thirds (63%) of Scottish tenants are currently renting because they cannot afford their own mortgage. In contrast, as many as 18 per cent of Scots don’t aspire to own their own home.
Almost one in five (18%) Welsh renters enjoy the flexibility that renting a property provides. In contrast, 12 per cent believe that their existing unsecured debts will prevent them getting a mortgage.
Tim Hague, managing director of Mortgages at Birmingham Midshires, said; “Recent house price growth has been well documented, so it’s hardly surprising that many people believe they will struggle to buy. However, the findings reveal an interesting trend; people are actually making a conscious decision to rent rather than buy.
"The buy-to-let market has experienced consistent growth over the last ten years, and these findings help to demonstrate why. More and more people now see letting property as an achievable investment and an important part of a balanced investment portfolio."
