A third of renters in the UK are planning to buy their first home in 2014, many spurred on by the introduction of Help to Buy, a new survey suggests.
A third of renters in the UK are planning to buy their first home in 2014, many spurred on by the introduction of Help to Buy, a new survey suggests.
The research by property website Rightmove found that 32% of renters plan to buy next year, a 6% increase compared to 2012.
Nearly a quarter of those said they were looking to buy due to the introduction of the Help to Buy scheme, particularly the second phase, which encourages mortgage lending to people with small deposits.
The survey of more than 17,000 people found that renters in London and the South East were most eager to buy. Also, nearly 60% of those planning to remain in rented accommodation next year want to buy but can’t afford to, the survey found.
‘More renters look set to buy in 2014 but saving a deposit still requires time and commitment, meaning that overall tenant demand is unlikely to change much,’ said Miles Shipside, Rightmove director and housing market analyst.
He pointed out that increased numbers of buy to let investors could lead to an increase in supply of property to rent, meaning landlords will have to keep prices down to attract tenants.
‘More landlords and the increase in supply due to buy to let mortgage availability is likely to keep rental price growth in check in 2014,’ he added.