Properties in Leeds: cost of living squeezes house and flat buying opportunities for Leeds renters
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Cost of living, spiking inflation and record demand for starter-homes is severely limiting homeownership opportunities for renters living in Leeds, according to new research by Gradual Homeownership provider Wayhome.
With little to no option of getting on the property ladder ‘traditionally’, 40% of tenants in Leeds would instead like to buy their current rental home, if it were feasible.
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Hide AdThis is quickly becoming popular among Leeds renters aged 18 to 34 years old, with 37% of this group wanting to buy directly via their landlord.
39% of 35 to 54-year-olds and 44% of 55+ year olds are also willing to opt for this route to achieve homeownership.
The main reasons driving renters in Leeds to buy out their landlord include the property’s location, the fact they love the property, and due to them already spending money and time to refurbish the space, all at 52%.
39% simply want to avoid the hassle of moving again in Leeds’s oversubscribed market.
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Hide AdMeanwhile, 24% of homeowners in Leeds say they would have considered buying the last home they rented, if it would have been possible at the time.
In reality, most UK tenants wanting to buy the property they rent in today’s market face tough challenges.
Typically, when applying for a mortgage a first-time buyer will be approved for 3.55 times their gross household income.
When the average UK income of £47,662 is considered, it can leave those buying on their own with a mortgage worth as little as £169,200.
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Hide AdEven if their landlord were happy to sell, the strict lending criteria enforced by the highstreet banks limits their chances of securing a mortgage sizeable enough to buy the property.
Wayhome has warned that the property market needs to adapt to enable more people to get onto the housing ladder.
Nigel Purves, Wayhome CEO, comments:
“The return of demand into city centres, including Leeds, is sharply limiting viable buying opportunities for renters."
"Amid cost of living concerns and the need for effective hybrid working going forward, this is a real issue and could force people to move further and further away from their place of work and into less desirable properties – whether they’re hoping to buy or continue renting.
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Hide Ad“Unlike mortgage providers, who typically look at what an aspiring homeowner could afford to borrow - at Wayhome, we fundamentally believe that if someone can afford to rent a property, it should be financially possible for them to buy it.
“Tenants with landlords who might be willing to sell should get in touch as we may be able to help.”
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