UK home movers see renting as favourable option

Home movers in Britain are increasingly opting for renting rather than buying property, due to affordability and a shortage of property in the market.

The research* revealed that 41% of home movers have decided to let rather than buy because of the tightened mortgage market and their inability to fund a significant deposit. The survey also noted that 27% were interested in owning a home but were not ready to buy at this present time, with 14% claiming that were not wishing to buy a home as part of a lifestyle choice.

According to the Council of Mortgage Lenders first-time buyers would need a deposit of approximately £34,000, compared to three years ago when the deposit required was about £12,700.

This need for a larger deposit, combined with the shortage of lending and property has made many individuals turn to the rental market as a more attractive long-term option that buying. This trend is moving the UK closer to the European housing model, where a high percentage of the population live in rented accommodation for the long term.

 * Research by lettingsearch.co.uk 

Source: Financial Times

Disclaimer
These particulars are intended only as general guidance. The Company therefore gives notice that none of the material issued or visual depictions of any kind made on behalf of the Company can be relied upon as accurately describing any of the Specified Matters prescribed by any Order made under the Property Misdescriptions Act 1991. Nor do they constitute a contract, part of a contract or a warranty. *Estimated rental yield figures are calculated using information supplied by the marketing agent and are based on the original market price. The rental yield figure should only be used as a guide and we strongly recommend you seek independent financial advice before proceeding with any investment