More people in London renting homes, than buying, new survey claims 25 per cent more people renting.
By Paula Planelles Manzanaro
More people in London are renting homes, than buying, according to a survey which has shown that 25 per cent more people are now renting, in contrast to the number of homeowners in the UK which has fallen by 2pc; with the lowest level of housing output since 1923, according to a report published by the estate agency Savills. Rents have increased 20pc in London and almost 25pc nationally. Buy-to-let investors have also raised their market share by 42 per cent since 2007. More rents mean the need to improve facilities by landlords in order to deal with more demand.
The number of tenants in 2011 was 275,000, which means an increase of almost 25 per cent last year, compared with 2010, according to a report published by the estate agency Countrywide. Whereas new tenants are joining the property market, the difficulties to get a mortgage from banks has caused a fall of the number of homeowners.
Rentals have increased with lettings of a house or a room in a flatshare growing, as opposed to buying a new home, according to a survey published by the estate agency Grainger, the UK’s largest residential landlord. The survey unveils that 54pc think that there will be more people renting than buying homes within the following 15 years. Long-term rents will also increase, according to the survey. 67pc of those polled said that it will be the new trend in the UK’s property market and, also, in most of Europe.
A report by Grainger also points out that not only the number of homeowners has decreased but also the average age of the first-time buyers in the country is heading towards the early 40s. According to the survey, there is also a massive demand of what it calls “inbetweenies”: those renters that cannot afford to be homeowners but do not qualify for social housing.
Andrew Cunningham, chief executive at Grainger, affirms that “there will be an increase in the private renting sector in the UK. At present, almost 90pc of English landlords are private individuals. The increase of demand has motivated new ways to attract tenants, such as an improvement of the facilities, according to the report by The Daily Telegraph.