40 Per Cent Of Tenants Renting For Life
Around 40 per cent of tenants currently in the private rental sector believe they will never be able to buy their own home and will be renting for life, according to a Halifax/YouGov survey.
At the same time some 30 per cent – mostly older individuals – think that it is now ‘the norm’ for many tenants to remain renting for life and not aspire to home ownership.
Younger generations are more hopeful with only 14 per cent of 18 to 24 year olds regarding it as unlikely that they themselves will one day be owner occupiers.
Despite the growth in the rental sector and increasing acceptance amongst some tenants that they will remain in this tenure for many years, the number of first-time buyers in the UK has actually risen in the past decade according to Halifax.
It’s risen from 72,180 in the first half of 2009, to 170,060 in the first half of this year.
The typical first-time buyer is now aged 31; FTBs overall account for over half of all mortgages, the first time this has happened since 1995.
“Taking that first step onto the property ladder remains a rite of passage for many. Last year, first-time buyers accounted for the majority of the mortgage market for the first time in well over 20 years. This shows that with the right support and a few sacrifices, home ownership can remain an attainable goal” according to Russell Galley, managing director at Halifax.
“The financial hurdle of saving enough for a deposit might feel like a daunting or at times near-impossible task, but there are a number of options out there, including government schemes and family support mortgages, to help put first-time buyers on the right track” he insists.
The average deposit for those buying their first home is now £41,099 – just under a fifth of the average house price of £224,709. Ten years ago, the average first-time buyer paid just £138,413 for their property with a deposit of £27,059, says the Halifax.