A third of private tenants have put their plans to buy on hold and have stayed in rented accommodation longer than planned.
A survey by Experian of nearly 1,500 private renters suggests 18 per cent doubt they would be accepted for a mortgage so feel renting is their only option, while 10 per cent have struggled to raise a deposit and consequently been forced to delay their plans to buy.
A further five per cent have had to prolong their time renting as they’ve been held up in securing a mortgage.
Some 25 per cent of those surveyed intend to buy a place of their own sooner rather than later; nine per cent are currently saving for a deposit and believe they will be able to buy within the next 18 months, while 16 per cent reckon they will need between two and five years to build up the required deposit.
A third of private tenants are content to rent and have no plans to buy a home of their own in the next five years.
Would-be first-time buyers who have been frustrated in their attempts to get onto the housing ladder are more likely to be single parents or couples with children. These tenants either doubt they would get a mortgage or have had difficulty securing one, or have struggled to get a deposit together.
People who are happy to rent tend to live alone or only with other adults and are less likely to see rent as ‘dead money’ than private tenants as a whole. One in four (26 per cent) of satisfied renters disagree when asked if renting is a waste of money, compared to 16 per cent of all private renters.