Introduction
The JLL Buyers and Tenants survey report explores trends in living priorities, energy efficiency and market sentiment. This years findings provide an insight into what drives buyers’ and tenants' decision when choosing a home, including which aspects of a home they prioritise and which could potentially command a premium.
The first few months of the year have provided some cause for optimism. In the sales market, an increase in demand from buyers has been evident, with many optimistic for interest rate
cuts later in the year. In the rental market, rental growth has cooled to more sustainable levels, and tenants are now able to move between properties without fear of being faced with large rent increases.
Both existing home owners and first time buyers have cited difficulties with home purchase. Most allude to high mortgage costs, with 61% of buyers waiting for mortgage rates to fall before they commit to purchase. For current tenants, mortgage costs and the deposit required are the largest barriers to home ownership.
Buying and renting a home
Higher mortgage rates over the past 18 months have impacted market sentiment and some buyers’ ability to purchase homes. Data from the 2024 survey shows that just 27% of buyers continued to purchase their original choice of home, down from 45% in the 2023 survey. This year, 26% of buyers decided to delay their home purchase, with 16% now looking at smaller properties or reducing their budget.
Of those who are delaying, 61% said they were waiting for mortgage rates to fall, while an additional 23% thought house prices were going to continue to fall.
Although rental growth is beginning to ease to more sustainable levels in most areas of the UK tenants are still spending a larger proportion of their take home pay on rent. This year, 50% of tenants spend 40% or more of their take home pay on rent each month, up from 49% last year, and 45% in 2022. Just over half of tenants are splitting their rental payment with another person.
26% of tenants said they think their next property will be one they have purchased, mirroring last year's results. However, more believe their next home will be another rental property (68% this year vs. 64% last year).
Living Priorities
Energy efficiency and broadband speed continue to occupy the top spot for residents’ most important aspects of a home this year.
Buyers and tenants have settled into a hybrid working environment with residents focusing on making their home a comfortable working environment. This year, 74% of tenants and 75% of buyers are in the office at least 1 day a week, while a quarter of residents are in full time, down from 28% last year.
Space for a home office and the need for fast broadband are both high on occupiers wish lists.
When thinking about the area in which residents are choosing to live, we continue to see public transport provision remain an essential requirement. 97% of buyers and 91% of tenants voted public transport as the most important aspect when choosing an area to live. Aside from this, it is evident that the local amenities are an essential part of living and finding a place which makes residents happy.
Sustainable living and energy efficient homes
“Although the initial shock of rising energy and household costs has subsided, the energy efficiency of our homes is still proving crucial to residents”.
The results of the 2024 survey mirror much of what we saw last year, with 70% of residents saying the energy efficiency of their home has increased in importance to them over the past year. Almost all buyers and tenants said that the energy efficiency of their next home will be either crucial or important to them.
Both buyers and tenants would be willing to pay a premium for a home if it meant reduced costs. Most notably, 77% of tenants this year said they would pay a premium to have bills included in their rent.
Cooling the home has now become just as important as heating. 43% of tenants said they had experienced overheating in their homes during the summer months, with most not having access to air-con/cooling systems within their current property.
For more information on the full results of the JLL Buyer and Tenant Survey please contact us
