Survey published after Housing White Paper outlined measures to boost Build to Rent also shows most important factors to people when choosing rented accommodation
Four in 10 people who rent a home expect to be renting a property for up to a decade, according to a survey commissioned by leading property and construction consultants McBains Cooper.
The survey also shows the proportion of income spent on rental accommodation, with one in four people saying their rent accounted for more than 40% of their income.
The survey also finds that renters also look for ‘traditional’ factors when choosing a rented home – such as affordability, room size and outdoor space rather than shared amenities such as sports facilities or communal spaces.
The survey of more than 2,000 people who rent a home is published at a time where there is a fresh focus on the private rented sector (PRS), with the Housing White Paper outlining measures intending to boost the sector.
The survey shows:
- 41% of respondents overall think they will rent for the next 5-10 years;
- Almost one in three Londoners (31%) think they will continue to rent for the next 5-10 years;
- More than half (52%) of 45-59 year olds and three quarters (76%) of 60+ year olds say they intend to rent a property for 5-10 years;
- A quarter (25% of respondents) said that more than forty per cent of their income was taken up by rent, with one in ten (11%) saying over half their income is taken up by rent.
- In London, more than a third of respondents (34%) spend more than 40% of their income on rent; for more than half (56%) it accounts for more than 30 per cent of their income, while for 17% spend on rent is more than 50% of their income;
- The four most important factors when renting a home were affordability (71% of respondents); room size (41% of respondents) and a garden or outdoor amenity space (29% of respondents); and proximity to work and close to transport facilities (both jointly 28% of respondents);
- The four least important factors for renting a home were an internal amenities such as sports facilities, communal space or a cinema (3 per cent of respondents); age and quality of finishes (8% of respondents); storage facilities (10% of respondents) and flexibility of tenancy terms (12 per cent of respondents).
Michael Thirkettle, Chief Executive of McBains Cooper, said:
“Our survey shows that renting for the longer term is becoming more common. For some it might be because they are priced out of the housing market, for others, it may also reflect a more Continental attitude where people are content to rent rather than buy. Either way, the potential for PRS and build-to-rent is clear.
“The findings will be of particular interest to investors and developers in the PRS and build-to-rent sector. Interestingly, a high proportion of the older generation are now long-term renters. This might reflect the more ‘traditional’ characteristics in terms of the most important factors people look for when choosing rented accommodation – such as room size and a garden or outdoor space, as opposed to amenities like sports facilities or a cinema and internal communal spaces.”
The survey shows public attitudes to buying and renting may have shifted significantly over the last five years. In the Public Attitudes to Housing in England report from the Department of Communities and Local Government, published in 2010, 86% of respondents said that if they had a free choice they would choose to buy, while only 14% said they would choose to rent their accommodation.