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Renters stuck in limbo?
New research has revealed that FTBs are finding it touch to escape the rental cycle...
The proportion of people moving out of a rented property and into a newly purchased home has fallen by almost a half in the first quarter of 2008, while the proportion of people moving between rented accommodation has increased by over a third during the same time period, according to new research by Moveme.com, the specialist home move service.
With ever increasing moving costs, an uncertain market and a dearth of attractive mortgage deals currently available, those who are yet to step onto the property ladder are opting to delay their first home purchase, choosing instead to stay in rental accommodation for longer.
FTBs hit hardest?
Keith McNeilly, co-founder of Moveme.com, said: “While people are still moving, the increase in the number of people choosing to move between rented accommodation is a reflection of consumers’ lack of confidence in the property market and current affordability constraints.
“Potential first time buyers who previously would have been the largest group moving from renting to buying, are now delaying a purchase as an uncertain market and tougher lending criteria is making it harder for this group to step onto the property ladder – a trend that is likely to continue for the rest of 2008”.
Home owners stay strong
Despite recent reports suggesting people are increasingly selling their homes and moving into rented accommodation, Moveme’s analysis found there was no change in the percentage of people moving from owning a property to renting in quarter one of 2008.
In fact the research indicated that those already established on the property ladder showed no signs of leaving, the market with those selling their current home and then buying a new property increasing for 2008.
Keith McNeilly continued: “The fact that those already on the property ladder are choosing to remain so is good news for the property market. It demonstrates that overall, the majority of home owners still view property as a good investment and are confident that the market will improve over the long term.”
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