The proportion of UK adults living in rented homes but planning to buy a home in the near future has doubled in the last 12 months, according to a latest research finding.
The number of tenants aspiring to buy a home has increased from 24 per cent to 58 per cent in 2018, said NAEA (National Association of Estate Agents) quoting findings from AA Financial Services.
The research showed that while the proportion of Brits planning to move house remained largely unchanged at 12 per cent, the percentage of families wanting to switch from renting to buying doubled.
The renters, who are planning to buy homes, prefer London and the South East, because of various advantages the two offer – prime among them is the economic growth fueling growth in the job market.
The widening gap between the demand and supply of homes is likely to impact the housing market. Over the years, many first-time buyers were unable to step on to the property ladder because of various challenges. However, of late, first-time buyers are driving the growth in the housing market in view of better employment opportunities and lower mortgage rates.
The government recently announced various programmes to boost housing in the UK. The Help-to-Buy equity scheme has also been extended by two years (2023) to enable greater number of first-time buyers to step on to the property ladder.
The findings, from AA Financial Services, have come at a time when the Government is emphasising its commitment to helping more people get on the property ladder and increase housing supply.