Four in ten tenants expect to rent a property for up to ten years according to the results of a new survey.
The results of the report from property and construction consultants, McBains Cooper, follow the announcement of the government’s housing white paper, which outlined measures to boost the Build to Rent sector.
As for the cost of renting property, one in four people said their rent accounted for more than 40% of their income. One in ten claimed that over half their income was spent on rent.
The survey, which took in the views of over 200 people, also revealed that when it came to selecting a home to rent, renters focused on ‘traditional’ aspects such as affordability, room size and outdoor space rather than shared amenities such as sports facilities or communal spaces.
Unsurprisingly, given the cost of property in the capital, almost one in three people in London believed they would continue to rent for the next five to ten years.
34% of London renters spend more than 40% of their income on rent; for more than half (56%) it accounts for more than 30 per cent of their income, while for 17% spend on rent is more than 50% of their income.
Michael Thirkettle, Chief Executive of McBains Cooper, said: “Our survey shows that renting for the longer term is becoming more common. For some it might be because they are priced out of the housing market, for others, it may also reflect a more Continental attitude where people are content to rent rather than buy. Either way, the potential for PRS and build-to-rent is clear.
“The findings will be of particular interest to investors and developers in the PRS and build-to-rent sector. Interestingly, a high proportion of the older generation are now long-term renters. This might reflect the more ‘traditional’ characteristics in terms of the most important factors people look for when choosing rented accommodation – such as room size and a garden or outdoor space, as opposed to amenities like sports facilities or a cinema and internal communal spaces.”
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