A third of private renters are having to spend longer waiting to get on the property ladder than originally planned, new research has found.
According to Experian, one in three private tenants has put their plans to buy a property on hold and remained in rented accommodation longer than planned.
Despite home ownership being considered part of the British dream, the survey suggests that there are over 1.5 million tenants are frustrated first-time buyers.
The survey found that one in five private tenants feel that renting is their only option as they don’t believe that they will be accepted for a mortgage, while one in 10 have bben forced to delay their plans to buy after struggling to find a deposit.
Experian’s Jonathan Westley said: “Many would-be first-time buyers face the challenge of saving for a deposit on a home while paying rent each month. While our research also shows that a significant amount of people are happy to rent in the long-term, whether it’s because they enjoy a good relationship with their landlord or the flexibility of rented accommodation.
Despite making regular payments for their housing, private renters don’t see this reflected on their credit report in the same way mortgage payers do.
“Yet the rent paid by tenants isn’t reflected on credit reports in the same way homeowners benefit from making regular mortgage payments. By adding this data through the Rental Exchange, people aiming to buy can build a stronger credit history to help them get a more competitive mortgage rate, while long-term renters can prove their identity when they apply for online services.”
One out of four of those surveyed said they intended to buy a place of their own sooner rather than later.
Meanwhile one in ten people are currently saving for a deposit and believe they will be able to buy within the next 18 months, while 16% think it will take between two and five years to build up the required deposit. A third of private tenants are happy to rent and have no plans to buy in the next five years.
