Two in five think they'll never own their own home

Posted by Kelly Luff in Mortgages on 23 September 2016 - Kelly is a Marketing Executive at checkmyfile

Two out of five people renting in the UK never expect to be able to own their own home, research has found. The Post Office survey has found that renters have calculated that it might take eight years on average to save for a deposit, in addition to the ever-rising rental payments they make.

A third of those asked think it will take in excess of a decade to save for a home, and the age that they expect to be able to afford their own home ranges from 30 years old in Scotland to a more pessimistic 37 years old in the South West.

Even in London, where it is notoriously expensive to buy your first home, the average age is 34. This possibly points towards the fact that those living in areas that are expensive to buy and rent, but which also provide a lower than average wage, leaves renters far more pessimistic about ever being able to buy their first property. In the East of England and the South West this anxiety seems to be at its worst, at 36 years and 37 years respectively.

John Willcock of Post Office Money says, “The struggle that first-time buyers face remains a huge concern and confidence among the group is low.

“High house prices and concerns about the cost of living have left many assuming that owning their own property is a distant dream rather than an achievable goal.”

With rent payments taking up a significant proportion of many renter’s take home pay, only a third expect to save the full deposit on their own. 23% will rely on help from their partner and a further 17% are hoping that an inheritance will help with their home owning dream.

With research from Your Move finding that two in five tenants are at least 46 years old, the problems with saving for your own home are simply restricted to those in their twenties and thirties. 18% of renters in the UK are over 55 years old, the same proportion as those under 25 years old.

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