Sharp growth in number of thirtysomething tenants
The lack of opportunities for first-time buyers is trapping a greater number of older tenants in the private rental sector, research from Countrywide has found.
The property giant said the number of over-30s living in rented accommodation at the start of this year was 5.8% up on the same period in 2013. Over-30s now account for almost six-tenths (59.3%) of tenants.
Countrywide said an increasing number of prospective first-time buyers were unable to get onto the property ladder by age 35 and were living in rental properties for longer.
The number of tenants in the 41-50 age bracket has also rocketed, now accounting for 16.2% of all tenants after 2.2% growth in the past year.
The launch of the Help to Buy scheme has failed to help these renters with those taking advantage of the scheme largely aged under-30 and based outside of London and the South East. This has caused a 5.8% year-on-year drop in the number of young tenants, although many have moved back in with family due to sky-high rents.
In London almost a quarter (22%) of 20-34 year olds are currently living at the family home.
Nick Dunning, group commercial director at Countrywide, said: “Help to Buy is having a bigger impact on the housing market in the North of England than in other regions across England, providing younger people with the opportunity to buy their first home.
“Over the past nine months in the North East, the number of Help to Buy equity loan sales equated to 27% of all new properties built in the region, whilst in London the number of Help to Buy equity loans was equal to just 7% of new housing completions.”
Article courtesy of Mortgage Solutions