Renters Potentially Outnumbering Mortgage Holders within Seven Years
Recent housing data suggests many attempting to get a foot on the first rung of the property ladder will likely be renting instead. For the next several years it appears many potential buyers of property will be paying a monthly rental fee instead of a mortgage. This is forecasted for several reasons, but the main one being the difference between wages and house prices, according to NatWest.
House prices have been increasing at some level each year for the past several years as seen in all public housing. The past few years have especially been kind to property owners, as the number of house price increases continues to occur month after month. This is one reason house price ownership or reliance on a mortgage will continue to decrease. According to the latest figures, by late in the year 2024, renters will outnumber mortgage holders.
As house price increases remain constant, wage growth does not. Wages currently are in continuous pursuit of house price growth. This fact alone prevents more from earning a spot on the housing property ladder. This trend of increasing renters is making it difficult for young people to afford a house when compared with the down payment and subsequent monthly payments of a house.
Although renting a residence carries with it added flexibility that owning a property does not, many prefer ownership over renting. There are tax benefits, the ability to add to a portfolio of assets, and the potential to pass down a keepsake to future generations.