Nearly a quarter of the renters (24%) longing to get their first step on the housing ladder next year have been prompted by phase two of Help to Buy scheme. This represents a 6% increase compared with 2012. Of those renting, over half (58%) are ‘trapped renters’ who would like to buy but can’t afford it.
More landlords - due to buy-to-let mortgage availability - combined with fewer tenantss looks set to create a flat picture for both demand and rental prices in 2014
One in five people (18%) currently living with their parents but planning to make the move to home ownership have also been influenced by the scheme.
Rightmove’s Consumer Confidence Survey found that over one in ten (13%) are not interested in buying as renting suits them and 28% would like to buy eventually, but not right now. Across the UK, London heads up the locations where renters are looking to buy next year.
Miles Shipside, Rightmove director and housing market analyst: “In the past three years rental prices have increased by a total of 7.6%, and the fact it has slowed to 1.4% within the past year is an indication that landlords will have to try harder to get the best returns.
"More landlords and the increase in supply due to buy-to-let mortgage availability is likely to keep rental price growth in check in 2014. However, it could be that we see buoyant rental and sales markets at the same time as a result of the housing shortage of the last ten years, which won’t be solved by a few months of Help to Buy.”
Phase Two of the scheme includes deals where borrowers who don't want to move can re-mortgage their existing homes. More lenders are launching Help to Buy mortgages, but the rates are still high compared to other 95% deals that are not part of the Government scheme.
Rightmove's House Price
Index Dec 2013.
