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Stuck renting forever: more tenants say deposits stop them buying

Most tenants believe they will never be able to own a home because of the burden of saving for a deposit to buy.

That’s the claim made by agency Intus Lettings on the basis of its latest survey of 2,000 renters.

Some 56 per cent of people said they choose to rent because they can’t afford the initial lump sum of purchasing a property – that’s up four per cent on last year, and is despite predictions that UK rents are expected to climb by 15 per cent over the next five years. 

The research also reveals that the issue of affordability is far more prevalent in over 25s, with some respondents even stating that the only way they’d be able to buy a house is by winning the lottery.

While 57 per cent of 18-24-year-olds have a more optimistic outlook on homeownership, those over the age of 25 continue to rent because of financial concerns, with 25-34-years olds (63 per cent), 35-44-year-olds (64 per cent) and 45-54-year olds (60 per cent) all saying they don’t have the money for a deposit. 

These figures have all risen year-on-year. 

Hope McKendrick, lettings manager at Intus Lettings, says: “Despite wages rising at the fastest pace in nearly a decade and falling house prices, the difficulty of moving from rented accommodation to owning a property continues to be widespread.

“The problem of finding a deposit is a common theme across the regions. However, more people in Northern Ireland (69 per cent), the South East (64 per cent), South West (61 per cent) and Wales (60 per cent), have admitted they rent because they can’t afford to buy.”

When asked what the biggest factor was when looking for a property, 41 per cent of respondents rated affordability as the biggest reason, with location (25 per cent) and transport links (8 per cent) ranking much lower.

“What the research does show is there is greater confidence amongst under 25s when it comes to owning a property in the future, compared to their older counterparts, with 75 per cent of 18-24-year-olds saying they would save their own money to buy a property” ads McKendrick.

This is a six per cent increase on last year’s survey results, with fewer people choosing to rent because it suits their lifestyle – down by eight per cent.

  • S l
    • S l
    • 14 December 2018 09:34 AM

    Excuses excuses just waiting for the government to fork out the bills as usual. how do they think landlord comes up with the money. stop wasting it away by spending on unnecessary stuff eg smoking, drinking, wine and dine, buying latest gadgets and games and shopping spree!!! so stop whining and start taking responsibility for your self financially. honestly, most prefer renting because they only have to pay rent. no worries on fixing and updating and move on without paying the utility bills for 6 months and spend all their money having fun. all they have to do is cry wolf to the council or mps to avoid paying damages and rent. well i want that too since its easier than cutting out my social life and funtime instead of tightening the purse to provide for the family and pension to avoid going onto benefit system

  • Kristjan Byfield

    Yowser- you didn't give the 'stop eating avocados on toast' advice did you?

  • S l
    • S l
    • 14 December 2018 11:49 AM

    If u want something , you got to work for it instead of expecting others to drop it on a silver platter for you

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    I was sitting in a train once and overheard a couple of blue collar workers who reckoned that the answer to the problem of how to get paid more money is very simple indeed. All that 'they' have to do is to pay them more money. I was intrigued so asked where this money would come from? They looked at me quite astonished and said its easy 'they' just have to print it as 'they' own the Bank of England don't they?
    Its therefore quite right, 'they' should simply print a bit more money and give it to tenants for the deposit. In reality I suppose the taxpayer would suffer. We could give it a nice name though like 'Homebuyer scheme' and only apply it to new homes so directors of Persimmon etc could win the game of monopoly. Brilliant.

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    My last deposit for a house was £12500 not a large over the top amount like London but still in the realm of realism for most people if they wanted to buy. Alot of tenants don’t want to buy full stop

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    My last deposit for a house was £12500 not a large over the top amount like London but still in the realm of realism for most people if they wanted to buy. Alot of tenants don’t want to buy full stop

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    I guess previous generations didn't see annual holidays abroad, £800 mobile phones, games consoles, the games, spotify, eating out three times a week, drinking expensive coffee whilst walking around the town, paying for 'experiences' and having the latest clothes as such a priority eating into their disposable incomes. We went without and saved. Going without these days is not an option, they want it all. Tough you can't have it all. Well most of us can't have it all.

  • Stephen Chipp

    When I bought my first house my wife and I stayed in for nearly two years to be able to save for our deposit. We screwed a penny till it screamed and as others have said I guess it just is where your priorities lie. It is harder of course but not impossible.....

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    There will always be a rental market in the uk and home ownership is not a reality for everyone. Fairer rents will be absorbed by the market with the added benefit that renters will be able to afford and pay their rent on time. It is where rents are 60-70% of income that difficulties begin for both the tenant and landlord. Where rent is not paid the issue of affordability would work in favour of the landlord in the view of the judiciary. Don’t misunderstand me, it is not the responsibility of landlords to mollycoddle tenants, but the benefits of affordable rent would allay many of the issues landlords face. Rents do need to include a sink fund for repairs, a contribution towards adequate insurance. For long term buy to lets landlords will have more flexibility in rental options as mortgage ratios change over time. The rental market is strong and will outlast brexit insecurity, we cannot say the same for the governments ambitious house building policy.

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