Many tenants in the UK’s private rented sector believe that they will never get a foot on the property ladder, due the sheer cost of saving for a deposit, a new survey suggests.
According to the poll commissioned by Intus Lettings, some 56% of people said they choose to rent because they can’t afford the initial lump sum of purchasing a property, up 4% from a year ago.
This is despite predictions that UK rents are expected to climb by 15% over the next five years while house prices are set to drop.
The research also shows that that the issue of affordability is far more prevalent in over 25s, with some respondents even stating that the only way they’d be able to buy a house is by winning the lottery.
While 57% of 18 to 24 year olds have a more optimistic outlook on home ownership, those over the age of 25 continue to rent because of financial concerns, with 63% of 25 to 34 year olds, 64% of 35 to 44 year olds and 60% of 45 to 54 year olds all saying they don’t have the money for a deposit. These figures have all risen year on year.
‘Despite wages rising at the fastest pace in nearly a decade and falling house prices, the difficulty of moving from rented accommodation to owning a property continues to be widespread,’ said Hope McKendrick, lettings manager at Intus Lettings.
The problem of finding a deposit is a common theme across the regions. However, more people in Northern Ireland at 69%, some 64% in the South East, 61% in the South West and 60% in Wales have admitted they rent because they can’t afford to buy.”
When asked what the biggest factor was when looking for a property, some 41% of respondents rated affordability as the biggest reason, with25% saying location and 8% transport links.
‘What the research does show is there is greater confidence amongst under 25s when it comes to owning a property in the future, compared to their older counterparts, with 75% of 18 to 24 year olds saying they would save their own money to buy a property,’ McKendrick pointed out.
‘This is a 6% increase on last year’s survey results, with fewer people choosing to rent because it suits their lifestyle, down by 8%,’ she added.
