Covid19: Renters are less likely to own a home now
Covid19 has affected how we live our lives, and studies show renters are less likely to own a home now. This bold statement highlights just how much the economy and people have changed over the last few months. Things we used to take for granted have been taken away and homes have become our anchor. However, with more people at home than ever before, what has made renters turn the tide on home owning?
Renters in lockdown
Research by Aviva suggests at that private tenants are now more pessimistic about being able to buy their own home. In December 2019, they found that 68% of non-homeowners hoped to buy a property in future. That figure is now just 52%, a drop that reflects just how much Covid19 has had on the housing industry. Also, the number of under-25s hoping to get on the property ladder in the next five years has dramatically decreased. It has gone from 35% in December 2019, to 27% now. This could have a devastating effect on the property market with less people making the move and improving the economy. The number of households, renting and owning, looking to trade up to a bigger property has also fallen. This suggests that the current housing market is causing people to put plans on hold.
Getting the economy moving again
There has been speculation of the government extending the help to buy scheme which is aimed at getting first time (and second) buyers onto the property market. The Government is currently considering extending the scheme to help support the industry after Covid-19 lockdown measures are lifted. Since the launch of the Help to Buy Equity Loan scheme in 2013, over 200,000 properties have been bought. And, first-time buyers accounted for 81% of the total purchases. The current Help to Buy scheme is due to end in April 2021. But it seems a new scheme will then run for two years, restricted to first-time buyers with regional property price caps.
It seems the world will take some time to re adjust to the new normal, but one thing is for sure, the rental market will be buoyant for some time to come.
If you are looking for a property to rent in Norwich take a look at our current properties.