Almost 40%, or two out of every five, tenants are not looking to buy their own homes, according to recent research by the Deposit Protection Service (DPS).
The survey of 1,000 tenants, whose deposits are registered with the DPS, found that many plan to remain in rental accommodation in the near future.
Some 38.4% of tenants told the DPS that they were not looking to buy a property and would instead continue to rent long-term.
Of the tenants that are hoping to buy their own homes, 25.5% said they hoped to own in the next six months, although 62% said they didn’t expect to buy within the next year.
It’s good news for landlords who are worried about keeping their properties occupied. Those that are anxious about their tenants not being able to pay the rent amid tax changes in the buy-to-let sector should remember to put the ultimate peace of mind cover, Rent Guarantee Insurance, in place.
For details about our comprehensive policy, click here: https://www.justlandlords.co.uk/rentguaranteeinsurance
The Managing Director of the DPS, Julian Foster, says: “Renting is a vital part of the housing sector and a significant proportion of the UK population choose to be tenants, as it better suits their life plan or lifestyles.
“However, buying a house is a significant financial undertaking and renting will often also suit those who are saving for a deposit before accessing a mortgage.”
He insists: “The UK needs a flexible residential sector that suits the varied life choices and priorities of our diverse population, and the rental sector plays an important role in providing people with real housing options.”
Landlords are reminded that they must protect the deposits of their tenants in one of three Government-approved tenancy deposit protection schemes.
This guide explains how to comply with the law and the importance to you and your tenants of protecting their deposits: https://www.justlandlords.co.uk/news/landlords-guide-tenancy-deposits-and-rent-arrears/