To Buy or Not To Buy. That is the Question

Are you a long-term renter? Would you prefer to buy the home you live in?

Do you currently rent your home. Would you like to buy your rented home? If so, you are in the minority according to Landbay which has carried out a survey of its tenants. In a poll of 2,000 private renters, the specialist buy to let lender, says only 42% of private tenants want to purchase a property.

The survey reveals tha older renters are the least interested in buying a home. Only 1 in 8 of the over 55s want to purchase in the near future. Aged 35 to 44, the figure rises to 46% who want to buy. This increases again to around 66% of millennials aged 25 to 34 who want to buy soon.

The gender discrepancy is also noticeable, with 47% of women across all age groups wantingto buy a home, as compared to just 34% of men.

The percentage of people planning to buy is highest in London (48%) and in Northern Ireland (47%). This is as opposed to those in the South West and Wales with both coming in at 37%. This is despite relatively lower house prices in those areas.

So Why Rent?

Why are the majority of tenants still content to rent?

Flexibility comes out on top and is largely seen as a positive. Tenants wish to be able to move where and when they like, something that is expensive and limited with home ownershiop.

One in four renters who have no wish to buy a home say that it is their key attraction. As Landbay point out, we assume that most tenants are simply renting whilst they save a deposit to buy their own home. This may not be the case at all, as the changing nature of employment, which can result in the requirement for more flexible living arrangements, makes renting attractive to a small but important group.

Going forward, any future government should encourage greater flexibility in the rental market and promote development of build-to-rent homes for all ages. It would be great to start to target other demographics in this sector, than just young professionals. They also need to find ways to regenerate failing town and city centres by building new homes. High quality, affordable and attractive residential property can be a driver that boosts local economies and brings people and businesses back into neglected urban spaces.

The way foward must surely be exciting, mixed-use development that works for everyone. Investors, landlords, home buyers and a wide range of tenants.