People in the UK Renting for Longer

The UK rental market has long been considered as a short term option with many people being advised to buy property as a strong and solid investment.

However, despite the fact that attitudes towards the short term benefits of the rental market have not changed, there is growing evidence that people are renting property for longer than ever before.

This news comes from property group Savills who have carried out extensive research into the subject.

4.3 Million UK Properties

As part of their research, Savills found that in 2011, there were 4.3million households in the UK which formed part of the private rental sector. According to recent figures, this number has grown significantly and the company expects this to carry on for the next five years, eventually growing by 1 million.

Savills discussed the data, stating that whilst the largest group of private tenants tends to be aged between 25 and 34, the fastest growing group is that between 35 and 44. This group has become known as "generation rent" and as a result of their current status and their advancing age, it is likely that people in this category will never own their own homes.

The Reasons

Of course, there are many reasons for the sudden rise in rents. One of the most obvious is a lack of other options. Whilst many banks and other financial institutions closed their doors to new mortgage lenders, those people had to find alternatives, and renting was one of the most popular options.
However, the growing demand for rental properties is having some negative effects. One of the most common of these is the increase in rental prices, which is in turn forcing desperate tenants into poor quality housing which is too small, uncared for or offers little security for them and their families.

Desires

A further survey which was conducted by YouGov for Savills highlighted what tenants are looking for from properties, especially when they are considering renting on a longer scale. Whilst younger tenants wanted flexibility from their properties, those tenants over the age of 35 wanted to concentrate on the security of their home and preferred tenancy arrangements which offered them the ability to do so. Furthermore, many highlighted poor quality and in turn the search for higher quality as their main reason for leaving a property.

Margaret Street, the Director of Residential Research at Savills confirms the research, saying "We interpret this as a search for better standard of accommodation, better design and higher specification."

She also discussed the importance of a change in attitudes and suggested that the figures give housing associations an opportunity to become more involved with the current situation, "The shift towards the private sector as the main provider of housing for those who can afford it, coincided with the rise in home ownership in the latter part of the twentieth century. Change in social attitudes towards housing and welfare, as well as cut backs in affordable housing grants, means that the social sector is unlikely to become the main provider of housing."

She went on to confirm, "Now is the time for housing associations to tackle a different kind of housing need. With home ownership now in decline, housing associations could broaden their tenant base and provide a proportion of their housing at market rather than social rent."