ARLA has revealed that of all tenants who are also potential first-time buyers, 60 per cent find renting the affordable alternative to stepping onto the housing ladder. Nearly half enjoy the flexibility of renting and over a third are waiting to make decisions over lifestyle and career.
10 per cent of letting agents also said that tenants enjoy not having the responsibility of property maintenance. The same number said tenants could afford more space or a better location renting rather than buying. Other reasons behind preferences for renting included problems with deposits, concern over interest rates and general uncertainty over the
housing market.
The likelihood that potential first-time buyers will find renting the affordable option is highest in the North West, with nine out of ten reporting this was the case. In Central London ARLA agents believe affordability is an issue for only 54 per cent of tenants.
Adrian Turner, chief executive of ARLA, said: “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.”
Simon Chalk, mortgage planner at Mortgage Portfolio Services, said although renting may be affordable, homeownership is in the blood and this was unlikely to change.
He explained: “Most people would rather buy but are deterred for one of two reasons: house prices are beyond their reach or short-term prospects of profit are slim. While the new university year will see increasing student rents, general upturn in those choosing to rent is unlikely.”
