Renting as a positive choice in the UK

Renting a home is often viewed as a temporary solution in the UK, with homeownership considered the ultimate goal. However, with house prices increasing and the property ladder out of reach for many, renting is becoming a more permanent and viable option.

Zoopla’s recent research shows that half of UK homes saw their values increase by over 1% in the first half of 2024. For many younger people, homeownership is simply unaffordable. More than 40% of adults under 40, dubbed “Guppies” (Given Up on Property), live with their parents and cannot buy a home due to high prices, rising mortgage rates, and the cost-of-living crisis.

The buy-to-let market plays a crucial role in meeting the demand for rental housing. Office for National Statistics data indicates private rents increased by 8.7% in the 12 months to May 2024. Nearly 85% of landlords plan to raise rents further this year, mainly due to rising interest rates and operating costs.

While renting is seen as a positive choice in countries like Germany and Switzerland, poor perceptions of renting and landlords in the UK are concerning. Landlords are increasingly worried about negative attitudes, which could discourage them from staying in the market. Our landlord survey highlighted concerns around upcoming legislative reforms, particularly the Renters’ Rights Bill.

Good landlords understand the need for reform, but they fear the removal of ‘no fault’ evictions may unfairly limit their rights. There are also concerns about potential increases in capital gains tax, which could drive landlords away from the market, worsening the shortage of affordable homes and pushing rents even higher.

Government policies must strike a balance, protecting tenants while ensuring decent landlords remain in the market. Rental properties can provide secure, affordable, high-quality housing, and renting should be seen as a positive and long-term choice for many.

The buy-to-let sector has shown remarkable resilience over the past 30 years, thriving through economic crises and regulatory changes. While challenges remain, opportunities for both landlords and tenants are still substantial.

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