It’s no secret that first time buyers in the UK, or rather prospective first time buyers are being met with increasing difficulty when it comes to stepping on to the property ladder. With this, the average age of the first time buyer is continuing to rise and the reliance on the so called Bank of Mum and Dad is as strong as ever. Living in your own home can be a complicated dilemma as many want to leave home to live with their partner, or for whatever reason, though after being priced out of owning their own home, they turn to renting.However, this brings about the problem about becoming stuck in the rented accommodation as saving for a deposit and paying rent can prove tricky. Almost a third of tenants in the UK feel as though they will never own their home. In addition to this, many tenants also share qualms about rising rents as landlords are met with an increasing number of policy changes.
In total, some 31% of renters feel as though they will not be able to buy whilst 21% believe that the removal of mortgage interest tax relief on buy to let properties, a policy which came into force in April this year, will reduce the supply of rented properties in their area.Furthermore, some of the tenants surveyed were also concerned that they will face rent hikes as buy to let landlords pass on the higher costs and 6% said that their landlord had already, or will increase rent as a direct result of said tax changes.The key reasons why so many Britons tend to rent boil down to affordability and access to mortgage loans. Half of the tenants surveyed admitted living in rented accommodation as they cannot afford to own their own home whilst 11% said they were renting because they were currently unable to obtain a mortgage whilst 14% rented out of personal preference. Of those living in rented accommodation, 57% were women, 43% were men, 39% were single households, 28% were families with children and 23% were couples.One in ten share their home with housemates. With half of all tenants in rental accommodation because they are not able to afford to buy their own home, it looks like many have given up hope of ever owning a property and for many, changes to buy to let regulations means that their rent will increase. As a result of this, saving for a mortgage will become even harder.The month of April saw profound changes to the taxation of buy to let properties which will directly reduce the profit made by a landlord, thus they are left with no choice to raise rents to make their own property venture worth it. Further to this, it is likely that many landlords will even sell house fast
following the changes as it emerges more landlords are looking to downsize their portfolio than there are those looking to add to it thus, the stock of available private rented homes may be even further reduced.