Financial commitments of homeownership deters renters from property ladder
New results suggest that many people in Britain not looking to get on the housing ladder just don’t want the financial commitment of homeownership.
According to Direct Line for Business, around 70% of the estimated 17 million people renting in the UK do not plan to purchase a property, with around 22% citing the associated financial commitment as the reason for them being put off.
The results of the research show that last year, the average price paid by first time buyers was around £207,693, in excess of 50% higher than half a decade ago, when a similar property would cost around £138,663 on average.
As well as being deterred by the financial commitments, 9% cited a lack of flexibility and a want to have the option to travel, whilst 8% said they didn’t want to be tied to one particular area.
Commenting on the results of the survey was Christina Dimitrov. The business manager at Direct Line for Business 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,’ said Christina Dimitrov, business manager at Direct Line for Business.
‘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.’