A recent report suggests that increasing investment of landlords in the property market is preventing first time buyers from purchasing their first home.
New research by the Strategic Society Centre points out that the number of landlords in the UK has doubled in the last two decades.
The report also argues that the higher financial status of landlords is pushing up property prices, making it harder for those eyeing the property ladder for the first time.
The SSC highlights the fact that the average financial wealth of a landlord stands at £75,103, while the average renter’s is just £9,506.
The director of the SSC, James Lloyd, argued that while the government says it supports those with the ambition to own a property, the rapid expansion of the private rented sector has reduced many would-be property owner’s dreams to nothing.
With the average property wealth of landlords standing at £479,598, according to the SSC, the imbalance between landlords and renters was further highlighted.
3.6 million households now rent, up from 1.6 million in the year 2000.
Getting on the property ladder remains very difficult, as the National Landlords Association’s Richard Lambert explains: “Many of those who once would have expected to become first-time buyers remain in the rented sector because they can’t build up the deposit to secure a mortgage in the current restricted market.”
Demand for rented accommodation is certain to grow – benefitting many of our landlord property insurance clients in the process. But with mounting pressure to tip the balance back in favour of first time buyers, will this government or the next make any changes?
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