When it comes to the choice for first time buyers between buying or renting, affordability, flexibility and responsibility are the major issues, according to the survey published today (August 31) by the Association of Residential Letting Agents, (ARLA).
Letting agents report that 60 percent of all tenants, who are also potential first time buyers, find renting is the affordable alternative to stepping on to the housing ladder. However, two other factors make for a clear second division of reasons for renting.
Nearly half of those yet to achieve home ownership also enjoy the flexibility of renting and over a third are waiting to make decisions over lifestyle and career.
These figures come from a survey of ARLA members carried out during August and supported by the ARLA Panel of Mortgage Lenders, Birmingham Midshires, GMAC Residential Funding, NatWest Mortgage Services, Paragon Mortgages and The Mortgage Business.
The likelihood that potential first time buyers will find renting to be the affordable option is highest in the North West and in the South East, outside greater London. In the North West, nine out of ten tenants were reported to be renting because it was their most affordable option. At the opposite end of the scale, ARLA letting agents in central London believe that affordability is the issue for only a little over half their tenants, 54 per cent.
Overall, ARLA members said that in their experience nearly 40per cent of their tenants enjoy the flexibility of renting while well over a third are waiting to make their lifestyle and career decisions.
However, only five percent of the letting agents said that tenants "simply prefer renting". Despite this, more than ten percent said that tenants enjoy not having to take responsibility for the maintenance of property.
Ten percent also said that tenants find they can afford more space or a better location by renting rather than buying.
Other reasons behind preferences for renting include 'Waiting for house prices to fall', 'Haven't enough deposit', suggesting caution over high loans to value, 'Not earning enough', 'Nervous about interest rates', and 'Unsure about the housing market'.
Commented Adrian Turner, chief executive of ARLA, "The option for choice in housing in the rental market is not only for choice in tenure. Affordability, flexibility and who takes responsibility are major issues catered for by the private rented sector."
