Renters Increasingly Showing No Interest In Buying Property
There’s always a lot of talk going on about how younger generations are struggling to get onto the property ladder and while this is certainly true, with the cost of living now so high that many face the prospect of renting forever, the question of whether or not they’re actually interested in buying property must now also be asked.
New research from Direct Line for Business has just revealed that of the 17 million renters here in the UK, more than two-thirds have no plans in place to buy a house. A fifth of those say they simply do not want to have the financial commitment that comes with owning your own home, with the study suggesting that the country is now moving towards a German housing model, where a greater percentage of the population actually rents.
For other survey respondents, the attractiveness of not owning a house is the flexibility, with nine per cent saying that they want to be free to travel, while eight per cent have no wish to be tied to one particular area. And some 22 per cent admit that they think the cost of property maintenance is too high and they’d prefer to have a landlord deal with any potential issues that arise.
Commenting on the findings, business manager at Direct Line for Business Christina Dimitrov said: “The UK housing market continues to change and we are seeing a major attitudinal shift when it comes to renting. While price is a factor, many people are increasingly comfortable with the flexibility afforded by renting a property rather than jumping into home ownership.
“In line with the greater demand for rental properties, the Government has introduced tougher controls and regulation. Recent legislative changes mean landlords have stringent guidelines to adhere to in order to ensure the health and wellbeing of their tenants. It is important that landlords ensure all of their properties are adequately insured to minimise distress to them and their tenants should something go wrong.”
Given this information, and given the fact that house prices are stabilising and rental yields are on the up, property investment certainly does seem to be quite an attractive prospect right now. If you’re new to this and aren’t sure where to start, it’s vital that you know what your legal obligations are so you don’t run into any trouble later down the line.
You’ll have to sort out repair and insurance liabilities, rent deposits will have to be handled in the right way… there’s an awful lot to think about beyond just buying a house and finding some tenants. But property development solicitors Lennon’s is here to help, guiding you through all the tricky legislation to help you become a competent and profitable landlord.
If you’d like to find out more about how we can help you take the next step on this interesting and lucrative career choice, get in touch with us today.