Many people renting in the UK are concerned that they will never be able to buy their own homes. Getting on the property ladder has always been a challenge, but according to new research, a large number of renters now think that it is beyond them.
So are they right? Here we take a look at the situation to find out what’s going on.
Renters Pessimistic About Getting on the Housing Ladder
New research was recently released by YouGov and Halifax, and it was reported widely in the press. It found that about two out of every five people renting in the UK at the moment cannot see a way that they will ever be able to afford to get on the housing ladder.
That’s despite the fact that many of them are still keen to own their own property at some point in the future.
In addition, the research found that about 30 per cent of renters now think that it is normal to rent for life without ever getting on the housing ladder.
Younger People Still Keen to Buy
This, however, was not a view shared by the majority of young people who took part in the research. When it comes to people aged from 18 to 24, only 14 per cent of them agree that it is now normal to rent for life, and over half said that they will one day own a property.
Optimism was lower in those renters aged from 35 to 44. A third of people in this age group now consider it normal to rent for life, and 28 per cent do not believe they will ever buy their own place.
First-Time Mortgages Are Increasing
Despite this research, there are still reasons for renters to be positive that they will be able to buy their own place at some point. Recent Halifax figures show that the number of first-time buyers has increased in the last decade from 72,180 in 2009 up to 170,060 this year.
Russell Galley, the managing director at Halifax, said that first-time buyers now make up the ‘majority of the mortgage market’ for the first time in over 20 years.
This shows that many people are managing to get on the housing ladder, so home ownership should still be an attainable goal for many.
First-time buyers are now typically aged 31, suggesting that many people are still managing to get onto the housing ladder in their early thirties.
The Biggest Hurdle
Perhaps unsurprisingly, the biggest hurdle for many renters is saving up for a deposit. The average deposit now for buying a first home is £41,099, a substantial amount of money for anyone to save up.
While there are ways to make it easier, such as government schemes, it is still clearly a huge challenge for many people to save up a large deposit.