Third of renters planning to buy in 2014

by Daniel Jones

Landlords around the UK might find that they have to find new tenants next year, as many of those currently in rented homes are looking to move on.

New research by Rightmove found that some 32 per cent of people who are tenants at the moment are planning to buy their own home in 2014, which is six per cent more than at the end of 2012.

Almost a quarter of those people said that the introduction of the Help to Buy scheme - and in particular its second phase - had led to them believing that they could finally get on the property ladder.

Rightmove questioned more than 17,000 people around the country and discovered that those renting in London and the south-east were the most eager to buy a place to live.

However, not everyone has ambitions of being able to invest in a home, with money worries a particular concern for many. Indeed, of those who plan to stay in rented accommodation next year, 60 per cent said that they simply cannot afford to move.

Miles Shipside, director and housing market analyst at Rightmove, said: "More renters look set to buy in 2014 but saving a deposit still requires time and commitment, meaning that overall tenant demand is unlikely to change much.

"More landlords and the increase in supply due to buy-to-let mortgage availability is likely to keep rental price growth in check in 2014."

With this in mind, it may still be a good time for investors to splash out on new homes with the intention of renting them out. Even if some tenants do manage to buy their own place, there will be others to take their place.

One particularly strong market is the student housing sector, which continues to be a lucrative investment for landlords.

Chancellor George Osborne gave the housing market a boost recently when he announced £1 billion of loans are being put up by the government to get large residential developments moving.

Published on: December 12, 2013

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