Home movers in Britain are increasingly opting for renting rather than buying property, due to affordability and a shortage of property in the market.
The research* revealed that 41% of home movers have decided to let rather than buy because of the tightened mortgage market and their inability to fund a significant deposit. The survey also noted that 27% were interested in owning a home but were not ready to buy at this present time, with 14% claiming that were not wishing to buy a home as part of a lifestyle choice.
According to the Council of Mortgage Lenders first-time buyers would need a deposit of approximately £34,000, compared to three years ago when the deposit required was about £12,700.
This need for a larger deposit, combined with the shortage of lending and property has made many individuals turn to the rental market as a more attractive long-term option that buying. This trend is moving the UK closer to the European housing model, where a high percentage of the population live in rented accommodation for the long term.
* Research by lettingsearch.co.uk
Source: Financial Times
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