Newly released figures from buy-to-let property sales experts, yieldit, have shown that the number of tenants who say they can't afford a deposit to allow them to purchase their own home has risen from 54% in 2018 to 64% this year.
The figures demonstrate that ‘Generation Rent’ could be here to stay.
The firm surveyed 500 renters on their current situation in an effort to understand the market pressures tenants face. The poll was completed before the COVID-19 outbreak, and so the business anticipates that even greater financial pressures are now being placed on renters.
The data also showed that 26% believed they did not meet the criteria for securing a mortgage.
Ryan Hughes, head of sales at yieldit, said: “Landlords are fortunate that we have a lively rental sector in the UK with many tenants remaining in properties for years at a time, which helps maintain a steady income for the landlord and keeps the sector buoyant.
“That said, it’s concerning to see the number of tenants saying they can’t afford to buy increase yet again. Renting is ideal for lots of people, for example, those who are ready for their first taste of independence but don’t want the long-term commitment of a mortgage, but it shouldn’t be a barrier to purchasing a home.
“Of course, at the moment there are unprecedented concerns regarding paying rent which we believe are only lessening the likelihood of renters seeking to move. And with only a third of respondents saying they were currently saving for a deposit — and with financial uncertainty likely to make people dip further into those savings — it looks like the numbers of renters in the market won’t be changing any time soon.”