Are you a 'forever renter'? More than eight million expect never to be able to buy their own home
- Two out of five renters in Britain never expect to be able to afford their own home
- The main reasons are not being able to afford a deposit or the mortgage repayments
- For those who believe they will get on the property ladder, they believe it will take eight years on average to save for a deposit
Two out of five renters in Britain never expect to be able to afford their own home, research suggested today.
It equates to 8.5million renters assuming they will never step onto the property ladder because they cannot afford a deposit or the mortgage repayments.
The Post Office survey found that renters believe it will take them eight years on average to save enough money for a deposit, with 33 per cent - the equivalent of seven million - expecting to save for more than a decade.
Two out of five renters in Britain never expect to be able to afford their own home
| Region | Average age |
|---|---|
| Scotland | 30 years old |
| North West | 33 years old |
| Yorkshire & Humberside | 33 years old |
| West Midlands | 33 years old |
| East Midlands | 30 years old |
| East of England | 36 years old |
| London | 34 years old |
| South East | 35 years old |
| South West | 37 years old |
| Source: Post Office Money | |
The reasons for renters not expecting to be able to buy also include that they are currently saving for a deposit and that they are enjoying the freedom of being able to move more easily.
The research found regional differences, with - perhaps unsurprisingly given higher prices - those in south west the least optimistic. Those in the east midlands are the most optimistic, the survey found.
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John Willcock, head of mortgages at Post Office Money, said: '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.'
Only a third of buyers expect to save the full deposit on their own, with 23 per cent relying on help from their partner and 17 per cent depending on money from an inheritance.
| Main reasons for not owning a home | Percentage of current renters |
|---|---|
| Can't afford the deposit unless circumstances change | 30 per cent |
| Can't afford mortgage repayments | 16 per cent |
| Currently saving for a deposit | 13 per cent |
| Don't want to own a home for other reasons | 11 per cent |
| Like the freedom of being able to move when I want | 6 per cent |
| Source: Post Office Money |
One in 10 say they will rely on help from the Bank of Mum and Dad to assist with their purchase.
A quarter of buyers would like to see more assistance available from the Government, with a further 16 per cent hoping for the return of the no stamp duty for first-time buyers.
| Year | Average age |
|---|---|
| 2013 | 38 years old |
| 2014 | 35 years old |
| 2015 | 36 years old |
| 2016 | 34 years old |
| Source: Post Office Money | |
It follows separate research published earlier this week, which showed a surprising two out of five tenants in the UK are at least aged 46 years old.
The figures from letting agent Your Move found that 18 per cent of renters are over the age of 55 and 22 per cent are between 46 and 55 years old.
It claimed 39 per cent of those in private rental accommodation were aged under 35 years old.
The 18 per cent of renters across the UK that are now aged at least 55 years old is the same proportion as those under 25 years old.
