Source: The Guardian
Latest figures released by the Guardian newspaper reveal how strong the current buy-to-let sector has become and how the changing attitudes towards renters is benefiting property investors.
In 2004, the majority of 25-to-34-year-olds owned their own home, but those born just a decade later are now far more likely to be renting from a landlord.
Over half (59 percent) of 25-to-34-year-olds owned their own home 10 years ago, but by 2014 this number had massively decreased to 36 percent.
Rising house prices across the UK have seen many young people priced out of buying a home while the percentage of young people renting their homes from a private landlords has more than doubled in a decade and now stands at 48 percent.
The number of families with children renting privately has almost tripled in a decade
Currently, there are more than 1.5 million families with children dependent on private landlords, compared with just 566,000 in 2004.
The average amount of time tenants live in a privately rented home is just 3.5 years, compared with 11.5 years in social homes. This makes it difficult for families to settle in to communities and schools. Due to shortages in social housing more and more families are turning to private renting each year.
Rents are rising faster than inflation
Rents charged by private landlords increased by 8.2 percent in 2014 with the average weekly rent climbing from £163 to £176.40.
The average rents in social housing meanwhile increased by 6.1 percent from £88.90 to £94.30 a week. Inflation (CPI) varied between two percent and 0.5 percent last year.
Outright homeowners now outnumber mortgage holders
For the first time, the number of people who own their home outright outnumbered those with a mortgage. 7.4 million households now live mortgage free. Low interest rates have allowed older homeowners to pay off their mortgages early while fewer first-time buyers have been able to enter the market.
It’s more bad news for young people and renters, but plenty to celebrate for private landlords and mortgage-free baby boomers in the English housing survey.