New research has found that four in every 10 people renting think they will never get on the property ladder, highlighting just how demoralised tenants are about the housing crisis.
According to the latest Post Office Money Mortgages report, the struggle to get on the property ladder has led 8.5 million UK renters to assume they will never be able to afford their own home. A further 2.5 million said they don’t ever want to buy a property.
The survey found that 30% of people never think they will be able to afford a home because they can’t afford a deposit.
Soaring rents mean it is becoming increasingly difficult for people to save up a deposit to buy a home.
Tougher affordability checks from lenders and rising house prices have also made it more challenging for first-time buyers with smaller deposits to get on the property ladder.
Prospective homeowners believe that it will take them eight years to save enough money for a deposit, with seven million renters (33%) expecting to be saving for more than a decade.
Only a third (29%) of prospective buyers expect to save the full deposit amount on their own, with 23% relying on help from their partner and 17% depending on money from an inheritance. One in 10 (12%) will look to make a withdrawal from the Bank of Mum and Dad to assist with their purchase.
The age prospective homebuyers expect to get their first foot on the property ladder has decreased steadily since 2013 from 38 to 34 years-old this year
The number of renters who say they will never be able to afford their own home has also decreased from 45% in 2015 to 40% this year.
Those in the South West are the least optimistic, with renters expecting to be 37 when they buy their first home.
For 16% of renters, monthly mortgage repayments are the main barrier to homeownership.
John Willcock, head of mortgages at Post Office Money, said: “The struggle that first-time buyers face remains a huge concern and confidence among the group is low. High house prices and concerns about the cost of living have left many assuming that owning their own property is a distant dream rather than an achievable goal.
“The news that the Help to Buy ISA cannot be used for an initial deposit will be a huge blow for savers and will push the goal of homeownership further out of reach. We hope government initiatives like the Lifetime ISA will offer more of a helping hand to struggling savers.
“More needs to be done to boost the confidence of first-time buyers and help them reach their goal of homeownership. Hopefully the recent interest rate cut will be reassuring for those looking for their first home.”
Top five reasons for not currently owning a home
| Main reasons for not owning a home | Percentage of current renters |
| Can’t afford the deposit unless circumstances change | 30% |
| Can’t afford mortgage repayments | 16% |
| Currently saving for a deposit | 13% |
| Don’t want to own a home for other reasons | 11% |
| Like the freedom of being able to move when I want | 6% |
