Six in ten tenants would prefer to be buyers

News Category: Industry News

Six in ten tenants would like to buy, but cannot afford to, Rightmove reported this morning. The movement from the rental sector on to the housing ladder is at a virtual standstill.

The findings emerged in a consumer survey it conducted into attitudes towards renting, which also found some signs of growing acceptance that renting is a long-term choice.

Although only 13.6% of tenants said they rented because they liked it, this proportion was up from 12.8% this time a year ago.

As well as 59% wishing they could afford to buy right now, a further 27.4% said they wanted to buy in the future.

Few tenants (just 7%) are expecting lower rents, and 40% are expecting rent rises over the next year: most expect rises of up to 10%.

Over 3,000 people took part in the survey.

Rightmove commercial director Miles Shipside said: “The ongoing mortgage famine has meant a consistent demand by lenders for substantial deposits over the last year and there is a strong correlation between this and the frustrations of would-be first-time buyers unable to get on the ladder.

“It is unlikely these figures will change until lenders can access much more wholesale funding, or potential borrowers can save up the bigger deposits required.”

According to FindaProperty, asking rents rose by 2.7% in the first three months of this year.


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