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More tenants can’t afford a deposit

Almost two thirds (64%) of tenants cannot afford a deposit to allow them to purchase their own home, research from yieldit has found.

This represents a significant increase from the 56% who said they couldn’t afford a deposit in late 2018.

Just a third (34%) are currently saving for a deposit, while a fifth (26%) believe they did not meet the criteria for securing a mortgage.

Ryan Hughes, head of sales at yieldit, said: “Landlords are fortunate that we have a lively rental sector in the UK with many tenants remaining in properties for years at a time, which helps maintain a steady income for the landlord and keeps the sector buoyant.

“That said, it’s concerning to see the number of tenants saying they can’t afford to buy increase yet again.

“Renting is ideal for lots of people, for example those who are ready for their first taste of independence but don’t want the long-term commitment of a mortgage, but it shouldn’t be a barrier to purchasing a home.

“Of course, at the moment there are unprecedented concerns regarding paying rent which we believe are only lessening the likelihood of renters seeking to move.

“And with only a third of respondents saying they were currently saving for a deposit — and with financial uncertainty likely to make people dip further into those savings — it looks like the numbers of renters in the market won’t be changing any time soon.”

The research was undertaken before the COVID-19 outbreak.