You are here: Home - Mortgages - First Time Buyer - News -

Home ownership a distant dream for millions of renters

Written by:
Nearly half of renters believe they will never own their own home, according to a survey by the Post Office. 

It found that 45 per cent of renters in the UK, equivalent to around nine million people, thought they would never get on the property ladder.

Of those who do hope to buy their own home, the average age of getting on the property ladder has risen to 36, up from 35 last year, suggesting rising house prices and the slow upturn in the economy remain challenges for first-time buyers.

Raising a deposit is perceived as the biggest barrier to securing a place on the property ladder, with renters believing it will take an average of eight and a half years to save a deposit.

While this figure has fallen from 10 years in 2012 and nine years in 2014, 10 per cent expect to wait for over a decade – and 28 per cent believe they will never be able to afford a deposit unless their circumstances dramatically change in future.

The figures suggest regional variations among renter expectations, with 51 per cent of would-be buyers in the West Midlands, 59 per cent in the South East and 63 per cent in the East of England and South West believing they will rent for life.

In terms of funding a deposit, 31 per cent say they would save the full amount themselves, 25 per cent will take advantage of the government’s Help to Buy scheme, and others will rely on loved ones with help from their parents (13 per cent) or a partner (19 per cent).

Of those who don’t currently own a property, 46 per cent say they would be encouraged by a fall in house prices, though this may still be a long way off as prices are still on the up. Lower interest rates would lead 24 percent of non-home owners to buy, while the re-introduction of no stamp duty for first time buyers would encourage 14 per cent to take the leap.

“It is clear there is still a long way to go to inspire confidence in the first time buyers’ market, with nine million feeling they won’t ever be able to buy their own property,” said John Willcock, head of mortgages at Post Office Money.

“The size of a deposit is clearly the biggest hurdle people face, with only 31 per cent expecting to be able to raise the money alone.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Everything you need to know about being furloughed

Few people had heard of ‘furlough’ before March 2020, but the coronavirus pandemic thrust the idea of bein...

Coronavirus and your finances: what help can you get in the second lockdown?

News and updates on everything to do with coronavirus and your personal finances.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
Lloyds shares: three funds to get exposure

The UK government will be pressing ahead with an offer of £2bn of shares in Lloyds Banking Group next spring.