OSB explores psychology of home buying and renting

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74% of Brits aspire to buy their own home, according to research by OSB Group, and so the specialist lender has sought understand why and what landlords can do to attract and retain good tenants.

Its Bricks to Belonging report, in partnership with consumer psychologists IB, looks at the drivers behind homeownership aspirations in the UK.

three core psychological drivers determine a desire for homeownership, beyond demographic influences such as wealth or life stage

PRIORITIES

The report reveals that tenants prioritise strong relationships with their landlords, the autonomy to personalise their living spaces, and a sense of control over their environment.

Neil Richardson, OSB Group

Neil Richardson, chief sustainability officer at OSB Group, said: “Affordability remains a significant challenge for many Brits and as a result more of us are renting for longer.

“For landlords, this is both an opportunity and a challenge, as they seek to find the best tenants in a shifting market.

“To create a thriving private rented sector, it’s key that we think and act beyond the headlines to support landlords in providing homes for tenants.”

PSYCHOLOGICAL DRIVERS

According to the research, these motivations are underpinned by three core psychological drivers that determine a desire for homeownership, beyond demographic influences such as wealth or life stage.

The first is the strength of the landlord-tenant relationship. From a psychological perspective this relationship is so important that, when it is negative, it is the primary driver of people deciding to buy. Sean Hooker, head of redress and Ombudsman Office, The Property Redress, said: “Landlords must recognise that renting is not just a financial transaction for tenants. The place where you live profoundly impacts your sense of belonging and emotional well-being.”

The second is the ability for tenants to express their personal identity through their living space. Dr Simon Moore, chief psychologist and CEO at IB, explained: “When you own something, like a house, you tend to want to stamp your personality over the place. If you can’t do it in rental property, it has a knock-on impact. Renters feel an inability to feel control because of this and that drives them from the rental market.”

The final key driver is the value of ownership and the need for control. While the research finds that homeowners and renters experience similar levels of satisfaction with their properties, the need for control is a significant psychological factor in driving them out of the rental sector.

Suzanne Smith, from the Independent Landlord and a founding member of the OSB Group Landlord Leaders Community, said: “Landlords should foster a long-term, collaborative relationship with tenants. Reassuring tenants that they can stay in a property long-term helps build trust and stability.”

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