Just under half (41%) of private renters rated the affordability of their rents as ‘excellent’ or ‘good’ with a further 38% rating it as ‘fair’, the National Residential Landlords Association reveals.
The data is from a survey, commissioned by NRLA, based on a survey of 2,000 private renters in England and Wales by the polling agency Opinium.
Prepared by ChamberlainWalker Economics director Chris Walker, the report concludes that the sector “has attributes that make it the tenure of choice for many private renters”.
Walker adds that “a high-quality and well-provided private rented sector (PRS) is likely to be a good thing both socially and economically”.
The survey results suggest it is wrong to conclude that private renters are trapped in the sector.
It found that fewer than one in 10 (6%) of private renters want to switch to social rented housing.
While three-quarters of respondents (76%) said they want to buy a home of their own at some point in the future, less than one in five (17%) would have done so already if they could.
With the Government committed to supporting ‘Generation Rent’ to become ‘Generation Buy’, the report finds that for many private renters, job security is the biggest factor in determining when they choose to buy a home.
Over one in three (37%) of renters were more likely to buy their first home if they had a stable, secure job.
This figure increased to 50% among renters aged 18 to 34.
With a growing number of older people now reliant on the private rented sector, almost half (48%) of renters aged 55 and older said they wanted to stay in the sector.
Noting that around three million people aged 65 and over want to downsize, the report argues that the PRS can play an important role in enabling this to happen by freeing up under-occupied properties for aspiring homeowners.
Government data reveals that more than half (53%) of owner-occupied properties are under-occupied compared with just 15% in the PRS.
Walker comments: “For many, the PRS acts as an entry point to the housing market, helping younger people gain their footing and independence when they leave the parental home without the bigger jump and commitment of homeownership.”
“Similarly, the PRS is a mainstay housing option for many younger people whilst at university and for many as they move away from where they grew up to enter the world of work for the first time.”
NRLA chief executive Ben Beadle adds: “Today’s report makes clear the positive and vital role the rental market has to play in the economic and social life of the country.”
“Contrary to the rhetoric from many, for the vast majority of tenants their experience in rented housing is positive. This is the platform the government needs build upon to ensure a sector that works for renters and responsible landlords.”
