1.7 million tenants frustrated by home buying barriers
One in three private tenants has shelved plans to buy their first property and stayed in rented accommodation longer than planned, according to findings.
A survey of 1,500 renters by credit check company Experian found nearly 1.7 million tenants are frustrated first-time buyers.
One in five (18%) tenants don’t believe they’d be accepted for a mortgage so they continue to rent, while 10% say they’ve struggled to raise a deposit which has forced them to delay their home buying dreams.
A further 5% have remained in rented accommodation while they secure a mortgage.
Regular rental payments
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.
To help private renters to get a mortgage, access finance or prove their identity online, Experian will allow rental payment information to be submitted to help strengthen renters’ credit histories and ease difficulties when they buy a home.
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. Yet the rent paid 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.”
The firm said more than 700,000 social housing tenants are in line to benefit from the scheme.