Home ownership figures are expected to fall further, as more young people are priced out of the property market. Basically, this means that a whole new generation is being priced out of the housing market, according to a new survey by LetBritain. Its figures show 39% of adults do not have the money to buy the type of property they want and, therefore, have to rent instead. In London, the figure is 49%, because of the high property prices. Those renters surveyed put the blame on the government, with 61% feeling the existing government is not doing enough to help Generation Rent turn into Generation Buy. Also, 64% of those asked – which is the equivalent of nearly 33 million UK adults – feel things will only get worse for tenants in the next five years.
Whilst Generation Rent feel let down by the government, landlords feel their efforts are being hampered by the politicians too. With changes to tax relief, mortgage relief and stamp duty, there are fewer financial breaks for landlords. Some are planning on selling up, while others may have to put up rents in order to combat the loss of tax relief. This situation will only make things worse for tenants. Obviously, something needs to be done to improve the situation for both tenants and landlords. The build-to-let incentive is one way forward, but there needs to be a more concerted effort for the millions of tenants in the UK and the landlords providing decent and safe housing for them.
Interestingly, some tenants are planning on becoming landlords themselves – so they obviously have respect for the profession. The survey shows that 27% of adults who rent are themselves looking for a buy-to-let property to get a foot on the property ladder. In London, this rises to 42% of tenants who would consider buying a property to rent out in more affordable areas of the UK. They see this as the only way forward if they want to be a property owner. They can buy a property in a different location to where they live, and thus have an investment without having to compromise on their location or quality of the house or apartment where they live. However, they will need to be aware of their legal responsibilities as a landlord, even if they use an agent or property management company.
If you’re a tenant who has recently bought a buy-to-let property, InventoryBase gives you all the tools you need to complete a thorough inspection and make sure you’re property in tenant-ready.