It has long been the ambition of many people to own their own home, but there are signs that many people are happy to continue to rent their accommodation, increasing potential opportunities for buy-to-let landlords.
Many households feel that they cannot own their own home because they cannot save enough for a deposit, but this is not the reason why many younger people choose to rent, according to a MortgageIntroducer.com article from July 2017.
Richard Lambert, the chief executive of the National Landlords Association, summed up the attitude of many millennials by saying:
“The mindset of those aged under 35 is different to the previous generation. They see life as less permanent and less certain, and are reluctant to tie themselves down to one place with another massive debt having often left further education with some degree of existing debt. This generation define themselves by their experiences. At that point, house purchase becomes a much less important thing.”
Although London rents are high, in many areas of the UK there are good landlords renting residential property at reasonable rents.
Research has shown that the number of privately rented properties will rise and represent about half the residential property market.
Government measures, including higher stamp duty and decreased tax benefits, have made it costlier to purchase buy-to-let property, but this has not put off all landlords. With rental yields forecast to rise and commercial mortgages at low interest rates, there are still plenty of landlords that are purchasing property to cater for the rising demand for rented accommodation.