According to an article in the Financial Times, increasing amounts of British citizens are making the choice to rent rather than buy property. This trend is continuing, despite the gradual economic recovery.
There are various reasons for this, driven by factors such as affordability, property shortage, and lifestyle. While many of these reasons are recession-driven, there is an interesting tendency towards choosing a lifestyle that favours renting.
Phil Calderbank, the director of Lettingsearch.co.uk, said: ?While homeownership will inevitably remain the dream of many Britains, we are seeing mounting evidence that a growing number are turning away from the sales market and choosing lettings as a permanent lifestyle option.?
According to the article, this choice brings the UK in closer comparison to the European model of housing, where a significant proportion of the population rents for the long term. In Germany and Austria for example, more than 50 per cent of citizens live in rental property.
In addition to the recession, a major influence on this trend is the lack of housing supply. According to the National Housing and Planning Advisory United, there is a demand for 238,000 to 290,000 new homes per year in the UK. In comparison, only 130,000 to 170,000 new homes came to fruition each year from 1999 to 2009.
These factors have caused a rise in demand for rental property, and longer tenure periods, as reported by agents and landlords. As many view long-term renting as a more attractive option than buying, it is likely that the rental trend will continue even when the recession is over.
