I think that you have an outdated view about families who rent. We are a family with 4 children, we wanted them to have a bedroom each and a lovely house. However, despite earning over£100k a year between us, we have no deposit.
We live in the north, our house is worth £600,000. We would never have got a mortgage for this. We pay £1350 a month and have now lived here for 3 years. There are similar families either side of us (investment properties).
I think our rent is similar (probably less) than a mortgage repayment on the same property. I know we'll never 'own' it, but it is definitely home!
I really think that it is time that England viewed renting in a different light. I know we will never own our house, but we live here and have a great deal of freedom, if something goes wrong, it's not our responsibility. I know we won't necessarily have property to leave to our children, but don't see this as an issue.
I really hope that renting becomes much more mainstream in the future (like in Europe). At the moment there are two very distinct markets - private rentals with dodgy landlords/tenants in the lower part of the market. Then the decent (sometimes!) higher end, which is generally more stable.
I'm sure your new neighbours will be a bog standard family (depending on number of bedrooms). It will be exactly the same risk, whether buyer or renter. If they're not nice (&renting) at least you might get rid of them quicker 😀
I am sure it will be fine.