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TODAY'S OTHER NEWS

Most tenants ‘have no desire' to own a home’

It is well known that homeownership rates have been falling rapidly, particularly among young people, despite government efforts to reverse the decline.

Official data in the annual English Housing Survey show 62.9% of English households owned their homes in the financial year 2015-16, the lowest figure since 1985.

The decline in ownership comes despite a series of measures initiated by the Conservative government designed to bring more people on to the housing ladder, including the Help to Buy equity loan scheme, aiding the acquisition of new-build homes.

While it is common knowledge that many would-be homebuyers are being priced out of purchasing property, leaving them with little alternative but to rent, others it would appear, simply to do not want the burden of homeownership.

A new tenant survey by Upad has found that while many people do aspire to buy their own home, others are more than happy living in private rented accommodation.

Almost nine out of 10 - 87% - of respondents told the online letting agent that they do not currently aspire to buy their own home, with 13% insisting they have no desire to ever own a property.

The study also highlighted the increasing number of long-term tenants, with 40% of tenants now having rented for more than four years, while it was also found that over one in five tenants have owned a property previously.

Upad also looked to discover the reasons why people rent, learning that almost a quarter - 24% - of tenants could not afford a mortgage, 26% of tenants rent because it fits their work or education situation, 13% of tenants rent due to personal circumstances, while 11% of tenants are renting to get to know the area before potentially buying.

“The number of long-term tenants alongside those who have no desire to ever own a home further highlights the importance of landlords in the housing sector, and how they will remain so for many years to come,” said Upad founder James Davis. 

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    • 06 October 2017 09:24 AM

    None of our tenants want to buy anything at all. Some are retired, some are transitory just doing a year or two here and there as they progress their careers. And so on. Should we also wish to dissuade car rentals? Most of our tenants will have to apply to the council for a home or uproot their lives and children and careers and future and move to somewhere cheaper. What enormous cost to tenants and good decent landlords and to what purpose? None whatsoever. Yet section 24 is an on coming train going flat out down the track and when it hits, virtually all leveraged buy to let properties will have to be liquidated. And all for a tax bill...

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    make sure all costs are added to rents and tell the tenants why!

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    • 06 October 2017 15:51 PM

    For us to remain in exactly the same situation prior to section 24 will require rents to rise by nearly 100%. That's why we have to terminate them and liquidate the portfolio. As no way can they swallow that.

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    i have paid off my mortgages

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