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Homeownership a dream for half of renters
This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.
A depressing new report has revealed that over 45% of UK renters believe they will never be in a position to afford their own home.
The latest Post Office Money Mortgages survey found that of the 20 million people that are currently renting a property in Britain, nearly half expect to never get onto the property ladder.
Growing
What’s more, the average age that people now expect to take their first step onto the ladder is now 36, up one year on 2014. This expectation of having to wait until mid-thirties to own a property is shared across most would-be buyers, with those in the East Midlands most sceptical. In this region, people believe they will be 46 before they will be able to own their own property.[1]
Raising a deposit was found to be the largest barrier to potential property ownership, with UK renters believing that on average, it will take them eight and a half years to save enough. One in ten expect to have to wait for more than a decade.[1]
More cause for concern was shown with 28% of prospective home-buyers feeling that they will never be able to afford a deposit, unless their circumstances dramatically change. In addition, 17% cited that not being able to afford mortgage repayments is also a concern.[1]
Worrying
‘The average age at which non-homeowners expect to get a foot on the property ladder has increased to 36 over the past year, which is a worrying trend,’ said John Wilcock, head of mortgages at the Post Office. ‘It is clear that there is still a long way to go inspire confidence in the first-time buyers’ market, with nine million feeling they won’t ever be able to buy their own property. The size of a deposit is clearly the biggest hurdle that people face, with only 31% expecting to be able to raise the money alone,’ he added.[1]
Homeownership a dream for half of renters
In terms of raising a deposit, 31% of those looking to purchase a property said they would save the required amount alone. 25% said they would take advantage of the Government’s Help to Buy scheme, with 19% said they would rely on help from their partners. 13% said they would enlist the help of their parents.[1]
26% of respondents said they believe greater assistance for first-time buyers from the Government would be a help, with 24% saying lower interest rates would encourage them to buy in the near future. In addition, the re-introduction of no stamp duty for initial buyers would tempt 14% to buy.[6]
11% of respondents simply stated that they were happy with renting and the freedom that it brings, admitting they have no desire to own their own property.[1]
[1] https://www.landlordtoday.co.uk/breaking-news/2015/9/homeownership-a-distant-dream-for-nine-million-renters
