Almost two in five tenants plan to rent long-term
The number of tenants choosing to rent in the longer term is increasing, with almost two in five tenants saying they plan to continue renting and not buy.
According to a survey carried out by the Deposit Protection Service (DPS), of the 1,000 renters asked, 38% said they planned to rent in the long-term, and had no inclination to buy at present.
The vast majority of survey participants said they didn’t expect to own a property within the next year, despite wanting to buy a property.
However, ‘no ownership’ is becoming more popular among millennials. The freedom of not being tied to a particular place or property can be appealing, and more people are choosing to rent instead of buy.
But with multiple tax changes affecting the buy-to-let sector, there is a risk there will be fewer buy-to-let properties available to rent if landlords choose not to invest, which could lead to rent rises for tenants.
As rental demand remains high in London, and across the UK, there is a need for landlords to purchase properties to let.
With many tenants unable to afford to buy a home, the number of long-term renters is increasing. Landlords can capitalise on this, and potentially benefit from low void periods and strong rental yields.
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