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High cost of homeownership drives consumers to rent

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Almost 80 per cent of consumers rent because barriers to saving and the eventual cost of the mortgage are just too high, according to research.

In a wide-reaching Precise-sponsored survey titled Mortgage Voice: Mapping the housing market need, 42% of respondents said they simply couldn’t save for a deposit, while 37% said the debt burden of a mortgage would be too much.

However, 33% were unaware the mortgage market had rebounded since the credit crunch and felt there were no mortgage options available.

The survey allowed respondents to agree to more than one option and 18% said renting allowed them to budget their finances better, 13% could live in a better area with renting and 10% lived in a larger property as a result of renting.

However, home owning remains an aspiration for 62% of respondents within the next five years. In the under 25 age bracket, 57% maintain they want to buy at some point.

Alan Cleary, managing director, Precise Mortgages said: “As a specialist lender, we think the industry has a duty to provide realistic, sustainable specialist mortgages that support modern home owning aspirations and buy-to-let entrepreneurialism.

“Mortgage Voice [the survey] provides a compelling and often surprising snapshot of the winners and losers in today’s marketplace. It certainly provides plenty of questions for the market, which it will need to address if we intend to meet future market need.”