Majority of tenants saving for first home

A new report reveals that over two thirds of tenants are saving for a deposit and are prepared to move away from family and friends, so they can afford to buy a property.

Related topics:  Landlords
Warren Lewis
12th February 2016
buy or rent

The research shows that just under a third of tenants have given up hope of ever buying their own property.  The study, conducted by PropertyLetByUs.com – a leading online letting agent, also reveals and 46% of tenants can only afford to purchase a property if they move to a cheaper area and one in six tenants would consider taking in a lodger to help with the mortgage payments.

Tenants were also asked how long they thought it would take to buy their own home and a third said within the next two years.  Nearly 20% said within the next three years and just 4% believe it will take them five years.  A tiny percentage of tenants (1.5%) of tenants said that it would take them over 10 years.

However, tenants do aspire to move up the rental ladder before they purchase their own home, with 51% saying that they are hoping to move into a nicer property when they can afford to.

Jane Morris, Managing Director of PropertyLetByUs.com comments: “Despite the recent media attention on Generation Rent, our research shows that the majority of tenants are actively saving for a deposit and are looking to buy a property in the next five years.

Savvy tenants recognise that they may have to look further afield for properties they can afford.  Many are prepared to move to areas that are some distance from their friends and families.

However, the latest stats show that a growing number of young people are renting for longer.  According to PwC, almost 60% of 20- to 39-year-olds in England will rent their homes by 2025, while just 26% will have got on the housing ladder.  This younger age group will find it increasingly difficult to buy and are likely to be older than previous generations, before they can afford their own home.

What is clear is that the majority of tenants still aspire to purchasing a property.  But many tenants recognise that they will have to make sacrifices and compromise, so they can afford to buy a home of their own.”

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