Will renters decide to buy?
In his latest spending review George Osborne has committed to increasing the housing budget to £2bn as part of a push to build 400,000 new homes by 2020.
With so many people priced out of the market in recent years, home ownership has been an aspiration reached by the wealthy and those prepared to save hard and long while cutting back on luxuries.
The property rental market has been vibrant with rents rising and yields increasing, fuelled by historically low interest rates. However, we may now be seeing an effort to curb levels of second property and buy to let ownership with a 3% stamp duty levy on these property purchases.
As well as continuing the help to buy scheme and, in time increasing the level of stock available to first time buyers, many will be given the opportunity to buy the property they are renting through a housing association.
With an estimated 4.4 million households renting privately and a further 3.9 million renting through social housing, collectively renting households make up just under 37% of all households in England.
Recent research by Arkenford segmented the London rental market revealing several key rental groups, each with unique motivations for renting and buying a property. As efforts to move more households into private ownership intensify, insight into what renters understand and feel about their options will be central to strategies for engaging them.
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