114x114_fitbox-114_sold_house_background.jpegBritain's obsession with home ownership is rapidly becoming a thing of the past as
renting makes a comeback. So property investors can start rejoicing as national buying trends move in their favour, reports Sq Ft Magazine.

Recent gloomy predictions - including one which says house prices will fall by 40%
over the next five years - have made the rental market more attractive.

A large proportion of people who need to remortgage in the next year may abandon home ownership altogether. 

Property purchasing company, National Homebuyers*, reports that it has seen the 'Sell-and-Rent-Back' part of its business double in the past year. Over half its customers are opting to rent the property they used to own rather than downsize.
Many of its customers who elect to rent back their old home expect to stay put in the property long-term - for three or more years.

"Property ownership is no longer the be all and end all in the UK - it is simply not
the priority it used to be," explains Julian King, managing director of National
Homebuyers.

"Most rental property in this country is in flats and houses with one or two
bedrooms." says Mr. King. "However, this is changing as people who own larger
properties begin to feel the pinch after a decade of low interest rates and soaring
prices.

"We are seeing a marked increase in the number of people who have family homes and have lived in them for a number of years that now want the Sell-and-Rent-Back
solution.

"They can't afford the higher mortgage or the threat of a fall in the value of their
property but they don't want to lose the home they have grown to love - renting is
the best alternative."


UK Property prices rise threefold in past decade.

People who have hung onto their home for more than three years would see a typical £35,000 appreciation in value, based on the UK's current average property price.

"For many people their home is their only real asset - the closest thing they have
to a pension. All that benefit could be wiped away if property prices nosedive in
the next few years," adds Mr. King.

Owner-occupiers abandon their homes

Many homeowners are now abandoning the idea of downgrading to cheaper properties to lighten the cost of their borrowing. Instead they are jumping off the property ladder altogether. This trend is unusual because it now encompasses a wider range of home owners opting to become tenants again - this includes families with children living at home and people in retirement.

Short-term, fixed-rate mortgages could be partly to blame fora recent fall in the property market. Some owner-occupiers are bailing out to withstand further market fall, to sit it out until the property market regains stability.

"There is a massive correction in house price inflation about to take place," confirms Julian King. "Many of our customers are offloading their homes now because the
alternative of playing a waiting game is too risky for them."


 Sell-and-Rent-Back - the facts & figures:


*        In 2008, 1.7 million homeowners will need to remortgage their properties. 
*        57% of National Homebuyers customers opt for Sell-and-Rent-Back
*        90% increase on 2006
*        68% expect to stay long term as tenants [three years plus]
*        30% of National Homebuyers customers opted for Sell-and-Rent-Back in 2006


*National Homebuyers is the largest UK consumer facing property purchasing company. It guarantees to make an offer to buy any property, residential or
commercial, regardless of condition, state of repair or location, using independent RICS Chartered Surveyors to gain a valuation on properties.