CIH: Not wrong to rent

Thursday, 24, Apr 2008 02:40

The Chartered Institute of Housing (CIH) has urged UK citizens to move away from the idea it is 'wrong to rent'.

With house prices rising dramatically over the past decade, many first-time buyers have been denied access to the housing ladder.

This has created a negative stigma in some sections of society, associated with living in rented property.

This should not be the case, argues the CIH.

"There has been a government target to increase home ownership, but we need to move away from the mindset that it is right to buy and wrong to rent, as different forms of tenure will suit different people at different stages of their lives," explained Richard Capie, director of policy and practice at CIH.

"A healthy private rented market is a good thing, but we need to think about asset inequalities between those who rent and those who own their own home.

"What matters is affordability and a home that meets individuals' and families' circumstances."

Research released last week by housing charity Shelter found the average first-time property price has rocketed nationally from £52,674 to £159,494 over the last decade.

This represents a rise of some 200 per cent, but potential buyers should not be concerned with a need to rent.

"It is our belief different tenures are suitable to different people at different times of their lives," continued Mr Capie.

"It's not only about how people get onto the housing ladder, it's about how your life changes. Particularly if you look at older people, it may well be that people start to get older and their ability and their financial situation changes.

"It may actually be better for them to move into a rental property that is maintained then try and keep on a house."

The average age of a first-time buyer is 29-years-of-age finds the Council of Mortgage Lenders (CML).

Chris O'Toole