Equity and value appreciation as main benefit of home ownership, survey finds

Value appreciation and equity build-up are the main benefits for home owners in the UK according to a new survey by an insurance company.

Almost half, some 46% overall rated these benefits, according to the study from BLP Insurance, a specialist residential warranty and commercial latent defects insurer. It was higher for those aged 55 and over at 56% compared with 35% of 18- to 34-year-olds and 45% of 35- to 54-year-olds.

Other popular benefits included inheritance and legacy for children at 42%, not having to share living spaces with strangers or housemates at 41% and ownership being a reflection of ambition and success for 30% of those who took part in the survey.

The survey, conducted online with Opinium, also revealed that 18% considered potential rental income to be a main benefit, with a further 17% citing property ownership as a risk-averse investment.

With consideration to the rental market, almost 18% of those people who took part in a separate BLP tenants survey have faced mould related issues, closely followed by 17% with plumbing and heating problems, 16% cheap fittings and furnishings and 11% noisy or untidy housemates.

Issues with landlords were also common, with 10% experiencing invasions of privacy and 8% being involved in a dispute over a deposit. Not having to deal with the related costs and responsibility of property maintenance was considered the most popular benefit of renting at 37%.

Kim Vernau, chief executive at BLP Insurance, said:

‘With prospective first-time buyers struggling to get their foot on the housing ladder and no quick fix in sight, it’s more important than ever that the standards of rental accommodation are addressed.’

The firm believes that the UK Build to Rent (BTR) sector is set to go from strength to strength, which is encouraging because it has a vital role to play in resolving the issues faced by renters.

Over a third, some 36% find deposit size to be the main barrier to ownership in the next decade.

Vernau added:

‘Build to Rent offers affordable access to quality housing, with greater accountability to tenants on the part of the housing provider compared with traditional landlords. It’s fast becoming the torchbearer within the rental market, helping people avoid the issues presented by rogue landlords and sub-standard living conditions.’

Kindly shared by Property Wire