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Around Half of Renters Don’t Expect to Get on the Property Ladder
This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.
Around half of renters in the UK (44%) believe that they will never get onto the property ladder, as saving for a deposit is too difficult.
Only 2% of private tenants plan to buy their first home this year, according to an independent study by construction and regeneration firm, Keepmoat.
Around Half of Renters Don’t Expect to Get on the Property Ladder
The average house price in England and Wales is now £178,000, according to Land Registry. However, there are significant regional differences. For example, the average price of a home in London is now £462,799.
Although properties in the North of England are typically more affordable, renters in Liverpool were most likely to say they never expect to own a home, at 62%. This is followed by 60% in both Newcastle and Glasgow and 41% in the capital.
The most common reason for not being able to get onto the property ladder is the inability to save a deposit, cited by 56% of respondents.
For those hoping to buy a home, the pressure of saving a deposit was the top concern, at 58%. In this group, 61% said they would be saving their own deposit.
Of the homeowners surveyed, 38% said it took between two and five years to save a deposit, but it took up to ten years for 13%.
The study also found that awareness of the Government’s Help to Buy scheme is low. This initiative helps first time buyers enter the property market. Under one in three prospective buyers said they will use the scheme and 38% said they don’t know what the scheme is.
Chief Executive of Keepmoat, Dave Sheridan, comments: “It’s clear that the amount of money first time buyers need to raise for a deposit continues to stop many from getting on the property ladder.
“However, we were surprised that the results show Londoners are more confident about owning a home than those in other cities, particularly in the North.
“There is plenty of assistance available for buyers in the form of the Help to Buy scheme and help is available when saving for a deposit with the Help to Buy ISA.”1
1 http://www.propertywire.com/news/europe/uk-would-be-buyers-2015071710762.html
