Why do many British people prefer to rent a house?

The number of people owning their own homes in the UK fell to its lowest level in 25 years. Data provided for the year 2012/2013 show that the number of homeowners declined to 65.2% in the last ten years, when the figure was at 71%.

The number of tenants, on the contrary, grows. This situation was the result of growth in property prices and the deterioration of the conditions of receiving mortgage. The UK government sees its task is to increase the amount of affordable housing.

During the 1980 -1990 years, the share of the private sector among homeowners who rent out has reached more than 10%.

Then the sector of residential property in the UK began to develop, has developed rules and standards governing the industry. The driver behind the growth of the private rental business was the introduction of UK banks in mortgage lending, aimed specifically for the delivery of property in rent, the so-called “Buy-to-let” investment.

Meanwhile, average rents in the private rental sector is about two times more than in social. In the Private sector rental weekly rent for accommodation is now averaging £164 , and in social – £83. Many working people living in the social sector, receive social assistance in the form of compensation for the lease.

In General, the private rental sector residential property is actively developing for the last 14 years it has increased its volumes in the market twice.

The financial crisis of 2008 was a little down the rental market reduced availability of mortgage lending. Now, however, the sector is again on the rise. Mortgage lending in the UK is now in a state of fierce competition, in addition, the rental market is in favorable conditions due to the lack of homes for sale and a significant increase in prices for new housing. As the rental market is stimulated from coming to the UK of highly skilled workers who have high earnings and a third of them come from families with children.

More and more families in the UK now are easy to rent their homes and prefer to rent as an alternative to buy, no wonder today’s generation of Britons called “generation of renters”

As long as house prices in the UK will grow faster than wages, the demand in the rental market of residential property will increase also, enabling an increase in rental prices.

® Alice Morgan 28.02.2014.

 Vauxhall SW8 5BP

Queensland

Greenland place