In 15 years time there could well be more people renting a home that owning one says Grainger, the largest listed specialist residential landlord.
This is something that we had already seen coming as house prices were kept artificially high by government and bank policies and ordinary peoples’ finances buckled under the strain of inflation, tax and wage freezes.
Grainger says that the new housing model in 15 years time is expected to be more renters than homeowner/occupiers.
And 40% of adults under 34 asked in the survey blamed previous generations for pushing house prices up as well as not building enough new homes.
The data comes from a survey of a representative sample of 2,220 members of the public.
67% of those asked said that long term renting was becoming more of the norm, with 54% saying that renters will outnumber owner-occupiers in 15 years time.
Grainger also says that the survey indicates that the ‘stigma’ of renting is gradually disappearing as more and more people look to rent.
“There is a new housing reality dawning on Britain: the financial crisis has tightened mortgage lending; house prices continue to be uncertain; and, frankly there are simply too few homes for the demand,” said Nick Jopling, Grainger plc’s Executive Property Director, “In such an environment, renting is becoming an increasingly popular alternative due to the greater flexibility, added financial stability and quality accommodation on offer. More and more people are renting with many considering renting as an important stepping stone in housing tenure. Young people now consider renting as a step towards home ownership and for as much as 92% of young people it is seen as the only way they can move out from their parents’ homes.”
But while this may disappoint many young people aspiring to own their own place as well as estate agents and associated businesses, there is a positive in that, with many young people renting, we will have a much more mobile workforce in the future. This may well prove to be a factor in the UK’s eventual recovery.
Then watch out for the next house price bubble!