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The UK is losing its love affair with home ownership as falling house prices and money worries encourage people to drop off the property ladder and become renters, a new survey reveals.
Fears that UK real estate prices will continue to fall has led to almost one in five home movers considering the option of cashing in and moving into rented accommodation. And 14 per cent of those looking to move say money worries are forcing them to think about dropping out of the property market and into rented so they can free up some much needed cash.
iammoving.com – the UK’s only free online change of address service – surveyed 1100 people who were in the process of moving home. As well as 18 per cent looking to cash in on a falling market and 14 per cent looking to ease cash flow problems, other reasons for a move to rented properties included relationship breakdowns and a desire to emigrate.
iammoving.com found that although 32 per cent would always prefer to remain homeowners, they would consider renting if they could not find a suitable house to buy straight away and if this avoided losing an interested buyer.
UK home occupancy at lowest level since 1998
The findings back-up figures revealed last month which showed owner occupancy at its lowest figure since 1998. Last year the number dropped to 14.538 million, down 83,000 on the previous year.
Simon Preston, chairman of iammoving.com, commissioned the survey as he found more people using the service, which saves movers time and hassle when notifying organisations such as utility companies, councils, DVLA, gyms and loyalty scheme providers when changing address, were switching from being homeowners to renters.
He said that it showed an Englishman’s home was no longer his castle – and the same applied to the rest of the UK.
“We could see that people were still moving but there was a shift towards renting. Our findings show that much of this is down to the problems in the housing market and the fact that people are struggling financially.
“You expect people to consider renting when the market is falling because there is a chance to make money, but 18 per cent is a high figure. The 14 per cent who indicated they might move to rented accommodation because they have money worries will find it hard to get back onto the ladder if they spend too much of their equity.
“Many might not actually make the jump to renting because of difficulty in getting the price they hope from their current home,” he said.
The survey also showed that nine per cent were thinking of renting as an option as their relationship was breaking up, seven per cent wanted to get off the property ladder because they were planning a move abroad and three per cent did not want the responsibility of owning a house. The survey found that 16 per cent of those responding were already renting.
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