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The majority of UK renters feel that the property ladder is out of reach due to the high cost of saving for a deposit.
Over half of renters in the UK think that they are never likely to get a foot on the property ladder because of the large deposit needed.
According to a survey of 2,000 renters, 56 per cent of people said they choose to rent because they can’t afford the initial lump sum of purchasing a property to start on the property ladder – up four per cent on last year.
The research by Intus Lettings has revealed that the issue of affordability is far more prevalent in over-25s, with some respondents even stating that the only way they’d be able to buy a house is by winning the lottery.
While 57 per cent of 18-24-year-olds have a more optimistic outlook on homeownership, those over the age of 25 continue to rent because of financial concerns, with 25-34-years-olds (63 per cent), 35-44-year-olds (64 per cent) and 45-54-year-olds (60 per cent) all saying they don’t have the money for a deposit. These figures have all risen year-on-year.
Hope McKendrick, lettings manager at Intus Lettings, said: ‘Despite wages rising at the fastest pace in nearly a decade and falling house prices, the difficulty of moving from rented accommodation to owning a property continues to be widespread.
‘The problem of finding a deposit is a common theme across the regions. However, more people in Northern Ireland (69 per cent), the South East (64 per cent), South West (61 per cent) and Wales (60 per cent), have admitted they rent because they can’t afford to buy.’
When asked what the biggest factor was when looking for a property, 41 per cent of respondents rated affordability as the biggest reason, with location (25 per cent) and transport links (8 per cent) ranking much lower.
Hope added: ‘What the research does show is there is greater confidence amongst under 25s when it comes to owning a property in the future, compared to their older counterparts, with 75 per cent of 18-24-year-olds saying they would save their own money to buy a property.”
This is a six per cent increase on last year’s survey results, with fewer people choosing to rent because it suits their lifestyle – down by eight per cent.