Nearly two thirds of tenants in private rental accommodation believe they will never be able to buy a home of their own, according to new research from Property Let By Us, leading online letting agents.
The survey reveals that just 35% of tenants think they will be able to get on the property ladder. Rising rents and soaring house prices have made property ownership a distant dream for many tenants.
The number of people living in private rented accommodation has risen from 2.2 million in 2002/03 to nearly 3.9 million last year*. The number of people renting from private landlords now outstrips those in council and housing association homes for the first time.
Half of those renting privately are under the age of 34, with private rentals outstripping social housing for the first time. (Source: * The Department for Communities and Local Government, 2014).
Home ownership has fallen to its lowest level for a quarter of a century and the number of people renting has almost doubled. More than a third of England’s 14.3million homeowners are now aged 65 and over as young people have been frozen off the property ladder.
Just 1.4million homeowners are aged between 25 and 34, the age group most likely to be raising families, while 96,000 are aged between 16 and 24.
Jane Morris, Managing Director of Property Let By Us comments: “Recent figures show that house prices leaped by another £18,000 in the year to August, hitting yet another record high of £189,306 on average.
“This is more bad news for would-be home buyers. The reality is that home ownership is changing in the UK and over the next ten years, we are going to see increasing numbers of people renting rather than buying.
Rising rents have meant that many tenants, particularly young people have been unable to save a deposit and the recent mortgage changes have made it even harder to secure funding.
“The growing demand for rental accommodation is good news for landlords, but as the market continues to expand, it is inevitable that this will bring greater Government scrutiny to the sector.
Legislative changes like immigration will put more and more responsibility on landlords and tighter controls will have to be introduced to ensure basic standards of accommodation are maintained and any deviance is punished effectively.
“Professional and law-abiding landlords will benefit hugely from this expanding market with rising asset values, increased tenant demand and good, stable rental income.”
For more information, please visit www.propertyletbyus.com