An article online at Money Week gives some interesting figures in favour of renting, explaining that there is not a housing crisis in the UK.
In a housing supply crisis, it would be expected that the cost of renting would rise quickly, however, the rate at which rents rose across Great Britain in 2016 was only 1.6%, according to the Countrywide Monthly Letting Index for December.
‘The number of homes coming on to the rental market rose by 12% in 2016 (with the greatest growing – 22% – coming in London). But the number of would be tenants rose by only 6%.’
As a result, ‘faced with greater choice, tenants have been able to negotiate on price.” In 2015 37% of those renewing contracts accepted a rent increase. In 2016 only 33% did. In Scotland and London renewing tenants even managed to negotiate average cuts in their rent (0.2% and 2.8% respectively).’
‘As a result of the rents not rises too much and house prices staying expensive, ‘UK house prices are bizarrely high relative to rents (50% above the long-term average). Houses are expensive to buy. Houses are not so expensive to rent.
This tells us that the problem in the UK housing market is not a shortage of housing (something also proved, by the way, by the fact that the average size of a household in the UK has not risen for years) but a surplus of speculation called by very low interest rates.’
Read the full article, here.