Tenant Insight – End of 2020

The Property Academy Tenant Survey 2020 indicates 52% of tenants are renting because they cannot afford to buy a home. 14% of tenants said they don’t wish to buy a property, and 19% do not plan on buying property for at least three years.

Some of the perks of renting cited in the study include:

• Flexibility, said by 12%
• Settling into a new area, listed by 10%
• Having all maintenance work taken care of for you, said by 3%

With respect to reasons for renting, other factors include:

• Divorce, said by 5%
• Being in between buying and selling property was said by 2%
• Studying was cited by 3%
• Age was named by 6% of respondents

Some people are happy to rent

However, a separate study from Paragon suggests a wider range of reasons why people are currently happy to rent.

54% of tenants said renting suits their current situation or they enjoy renting. The reasons for this response include:

• 48% of respondents said they like not having to worry about repairs
• 35% cited the flexibility to move at ease
• 32% said a great location means they are unlikely to move
• 31% said they like living in an area where they couldn’t normally afford to buy property
• 22% of respondents said the property is perfect for them

Other key findings from the study include:

• 72% of respondents in rental property would like to own property in the future
• Tenants in the age group of 25 to 34 have the largest desire to purchase property
• 88% of tenants in the 25 to 34 category want to own property in the property
• 70% of tenants in the 45 to 54 age group want to own property
• 50% of tenants aged between 55 and 64 want to own property
• Just 34% of tenants aged 65 or older want to purchase property

Richard Rowntree, Paragon’s managing director of mortgages, said; “We spoke to nearly 2,000 tenants in the private rental sector across the country about their experiences of renting and the results confirmed what we suspected. The tenant base is diverse - from young couples finding their first home together, to families, to people in later life who may live on their own – but it’s one that sees the benefits of the tenure.”

Richard continued by saying; “Of course, the UK is a nation of homeowners and many tenants naturally aspire to own their own property, particularly those in the younger age brackets, but people are generally happy in their rented home, recognise that it suits their needs and, on the whole, enjoy a good relationship with their landlord.”

Richard Rowntree said; “Our research shows a strong desire to buy amongst younger tenants who will typically use rented property as a starter home before stepping on the property ladder. This cohort also is more able to save for a deposit, making their aim of buying a home more attainable. As tenants reach their middle-aged years, the desire to own a home becomes less pronounced, but so does the ability to save for a property. These tenants will typically stay in the private rented sector for a longer period, maybe for the rest of their lives.”

If you are looking for guidance or information regarding the housing market, please get in touch with Hunters Camberwell. As a local estate agent who has the support of a national network, we are ideally placed to provide you with all the help and guidance you need to make an informed decision, so please contact us today.