According to a general insurer, the rental housing market is changing. Apparently, there is an increasing number of high-earning people in their 30’s who are renting, rather than buying a home. More Than (the insurer) claimed that the number of people renting property over the last ten years had increased by almost 20%, claiming that the main reason was the rises in house prices.
Our View
The recent rise in house prices has certainly put a considerable amount of people off purchasing a home of their own and getting tied down with a huge mortgage. What we are seeing though is people willing to pay top-whack for renting. This could mean they are waiting for house prices to fall before they jump onto the property ladder.
Our view is that in the short term, the mentality of renting whilst waiting to buy could pay off. However, the downside is that if property prices do keep rising, the renters will have missed the boat.