Third of renters can’t imagine ever owning a home
A third of renters can’t imagine ever taking their first step on the property ladder and owning their own home.
This is according to a study of over 700 renters commissioned by GoCompare Mortgages.
The research also found that 21% of tenants surveyed believe that the controversial restriction of interest tax relief on buy-to-let mortgages will reduce the supply of rental properties in their area.
Some of those taking part said that they are concerned about rents rising due to the tax changes, the first phase of which was introduced in April.
Meanwhile, 6% of tenants said their landlord had already increased the rent or was planning on doing so as a direct result of the tax changes.
Affordability and poor access to mortgage funding remain two of the main reasons why participants rent properties from landlords.
Half of the tenants surveyed live in rented accommodation because they can’t afford to buy, 11% were renting because they were unable to obtain a mortgage and just 14% were renting out of preference.
“It looks like many [tenants] have given up hope of owning a home and, for some, the changes to buy-to-let regulations are likely to make renting more expensive,” says a spokesperson for GoCompare Mortgages.
“In turn, that makes saving for a mortgage even harder.”