Why is it wrong to be a nation of renters
Have we as a nation now or almost reached the point where need to acknowledge and accept that the culture and physically the housing marketing has shifted. For far too many reasons to enter, we are moving from a nation of home owners to a nation of renters. Why is this such a problem for so many people? Many other countries that are successful in so many ways are countries of renters. What is in our cultural mindset that causes us to resent and resist that we are changing to a nation of renters?
In 2017 the total amount of rent paid by tenants in Britain rose to over £50bn, this has doubled in less than a decade, further emphasis on the change from owners to renters. How long before this figure eclipses the entire sum paid out by homeowners for their mortgages.
I found the research which was conducted by Countrywide, shows that home ownership is declining, let us not confuse home ownership with property ownership. Yes, buy to let landlords have mortgages but the rent paid is normally higher than the mortgage payment, so it does not distort the research by a great deal.
Looking further into the report with regards to mortgage payments, it shows that following a peak in 2008 it has now fallen to £57bn. Does this show that 10yrs on the country is still feeling the fall out of the credit crunch? Was that the major event that started the cultural switch from owners to renters?
When you delve a little deeper into the report it shows that the millennial generation, born between 1977 and 1995, are the largest target for renting and they are spending just over £30bn on rent, triple that of pre-credit crunch time. This is backed up by research from the English Housing survey which showed almost 50% 25-35 yr olds are renting.
If we are moving to a nation of renters do we need rent controls implemented? As many claim that the majority of tenants are now paying more than half their salary in rents. However, as we have discussed previously some are making that choice out of their own volition. It can be a tenant’s choice to pay more.
Is it wrong that now millions of people have no choice but to rent? We have seen a plethora of legislation being introduced to protect these millions of renters. As with most industries you are always going to have the minority of rogue companies and individuals, remember Tescos and the two scandals they were found guilty of.