Renters who have to move soon will have to think again if they are looking to sell their home, and the question of how much they will pay has become more pressing as the economy slows.
With prices rising, some renters may have to consider selling their home in a hurry.
A report released by the London-based Property Institute said many would have to sell by the end of 2019, and that by 2021, around 2.4 million homes would be sold in the UK.
“With house prices continuing to rise, many are going to need to sell,” said the report’s author, Tom Daley, from the Property Institute.
“There’s an increasing sense that house prices are unsustainable.”
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The study also found that more than half of all UK renters would have a mortgage, and half would have at least one mortgage.
“The number of people who are struggling to make ends meet with the mortgage repayments will continue to grow, especially in the future,” the report said.
“We’re also seeing a rise in people who have already sold their home but are looking for a place to move.”
The number renting in the capital has doubled over the last decade, to about 3 million, the report found.
But it also found a huge increase in demand, as home prices have risen by more than 30 per cent since the start of the financial crisis.
The report, titled Housing for the future: The rise of the renter, said that if a home is priced more than £300,000 ($400,000) the average income for renters would rise by more in 2019.
For some renters, a mortgage might be a better option than buying a home outright.
The Property Institute’s report also found an increase in the number of investors buying properties.
While the report didn’t cover all of the markets where investors are buying, it said that the biggest areas were in London, the south east, north west and north east.
It also found London has seen an increase of nearly 30 per 10,000 properties purchased, the biggest rise in London over the past decade.
While there has been a spike in investor activity in the past couple of years, it has not led to a rise of investor demand, the study found.