Buy-to-let focussed marketplace lender, Landbay, has been crunching the numbers and found that just 42% of tenants are interested in buying in the near future.
According to a study of 2,000 private renters in the UK, older renters are the least interested in buying a home. Only 13% of over 55s are interested in buying a home in the near future. Less than half (46%) of those 35-44 are interested, whilst millennials (aged 25-34) are leading the charge for home ownership, with almost two thirds (64%) keen to buy in the near future.
There is also a notable gender discrepancy. 47% of women are keen to buy a home, compared to just 34% of men. Women who want to buy are more likely than men to want to invest their money rather than pay rent (48% vs 39%) and make decorating decisions (20% vs 14%), while male would-be buyers are keen to have a connection to the local area (8% vs 4%) and have more space (25% vs 24%).
The number of people planning to buy is highest in London, at 48%, and Northern Ireland at 47%. Those in the South West and Wales are least likely, both coming in at 37%. This is especially surprising given the relatively low house prices in these areas.
For those who aren’t interested in buying, the flexibility of renting shines through as a positive. A quarter (25%) of renters without home ownership aspirations say the flexibility of renting proves too tempting to resist. 6% attribute their plan to move to a new country, and 5% plan to move to a new city or a new job.
John Goodall, CEO, Landbay comments: “This research suggests the UK’s enthusiasm for homeownership may be waning. Conversations around the private rental sector often assume the bulk of renters are simply biding their time until they can buy a house. However, the changing face of employment and a thirst for flexible living mean renting is more attractive than ever, and landlords should reflect this in their interactions with tenants.
It’s crucial that investment in the private rental sector becomes a priority. What use is Labour’s ‘right to buy’ policy if renters have no interest in doing so? Instead the government must focus on encouraging purpose-built rental properties and cease its penalisation of landlords.”