2012 could be the year in which property renting becomes the new ‘owning’, according to one of the UK’s largest letting experts, Belvoir.
Increasing consumer nervousness, rising unemployment and a squeeze on peoples’ purchasing power triggered by a global downturn and the current Eurozone debt crisis are all factors which could make many turn their back on prospective home ownership, predicts the company.
“I believe that, for reasons of flexibility, mobility and budget, 2012 will see a shift towards more people viewing renting as a preferred lifestyle choice, rather than a necessity,” says Steve Tunney, owner of Belvoir Milton Keynes, one of over 140 Belvoir offices throughout the UK.
Belvoir has noticed a number of new trends. ‘Double renting’ is a new phenomenon – where homeowners struggling to sell are letting out their existing homes to provide extra income and moving to another lower cost rental property.
In addition, a trend towards longer lease rental agreements means a rented home is no longer just a temporary place to live.
Following the model set by their European counterparts, many UK tenants are looking to make a rented property their long term home.
From a prospective landlord’s viewpoint, the current market still offers great opportunities, but anyone looking to invest in buy-to-let in 2012 must have a clear strategy, since it is not a ‘get rich quick’ scheme.
Steve said: “They need to ensure they buy property at the right price and identify the type of property which people will want to rent from them both now and into the future.
“There will always be local variations, even in different areas of Milton Keynes, but renting is proving to be consistent and increasingly seen as the real alternative to home ownership.”
For more information call Steve Tunney on 01908 562582