Many commentators refer to the supposed sea change in peoples approach to property. The commonly held view that it is a lifestyle choice and offers greater flexibility and freedom of movement might indeed be true for some but a recent survey commissioned by Go Compare mortgages suggests a somewhat different picture.
A third of tenants in the survey cannot envisage ever owning their own home , not because they do not wish to do so but because they cannot see how it might be financially possible. This is linked to the rise in rents which further erodes their capacity to save for a deposit. So are rents in fact rising ?
21% of this sample thought that because of the restriction of interest tax relief on buy to let mortgages it would lead to a reduction in the supply of rental properties in their area and as part proof of this has either experienced a rent increase or been advised that one was likely in the near future.
This is the true dilemma of the housing market. Rising rents because of reduced supply versus stagnant wage rate growth. Its an issue the Government will have to grapple with in the years ahead to avoid a housing crisis and there is plenty of coverage on this topic to be found elsewhere.