More people choosing to rent than ever

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11th January 2012

More people choosing to rent than ever

Nearly twice as many people in the UK are renting in comparison to owning their own home, according to research released this week.

Results published by insurers, Endsleigh, reveals that 45% of its policyholders live in rented accommodation, double that of people who owned their own home (23%).

Despite 92% of renters ranging between 16 and 50 years old, with many different needs from their property, all ages said they like the flexibility of renting, allowing them to live in a variety of places and properties. Many believe they can get more for their money as currently there are a greater number of properties available to rent.

Unfurnished homes are preferred, allowing the tenants to add their own personal touches to the property.

Carlos Thompson, head of business development at Endsleigh, said: “The impact of the recession on the value of properties has meant that some home owners have opted to rent rather than sell, increasing the amount of supply in the lettings market. However, whilst more properties means more choice, the surge in renting means there can be fierce competition in applying for a property, and there is a real risk that tenants will stretch beyond their means and choose somewhere that they wouldn’t normally, just to secure a property.”

The research also found that almost half of industry insiders believe more pressure should be put on banks to ease lending, with nearly a third calling for support for first time buyers should come from local authorities.

Other research has shown that the amount of home owners who are struggling to sell their property are now turning to letting agencies for a helping hand, choosing the alternate option to rent their property rather than sell for less then they had first hoped.

However, in spite of concerns over the UK economy, job uncertainty and high property prices, Endsleigh also found that three out of five (62%) of renters surveyed are hoping to buy a property within the next five years.