Despite talk of increased arrears and wider economic concerns, it appears tenants are increasingly worried about the long-term effects of poor credit score.

New research from Aldermore Bank, surveying 2,000 private renters, shows tenants are particularly concerned that their scores will not hamper them eventually buying a home. 

The bank’s survey shows that nearly half of renters say owning a home is a life goal of theirs, with one in four actively saving for a deposit currently, with the greatest intentions being among renters in Northern Ireland, Greater London, and the South East. 

Furthermore, the experience of the pandemic and lockdown among renters has strengthened home ownership ambitions, with a quarter saying lockdown has made them more motivated to buy their own home.

But actually realising the dream of home ownership is proving difficult. The biggest obstacle for home ownership according to renters is raising a deposit (for 30 per cent of respondents), affordable house prices (17 per cent) and high rent costs (13 per cent).

With nearly half of prospective first time buyers being rejected for a mortgage, it is understandable that one in 12 renters see securing a mortgage as their biggest obstacle.

Over a quarter say credit history is a big concern, with two fifths looking to actively improve their credit score to increase their chances of securing a mortgage.

The main credit issues of private renters include having an overdraft, credit card debt, gaps in employment, responsibility for dependants and missed bill payments.

Some seven per cent have taken out a payday loan, and five per cent have a County Court Judgement in their past.

The Covid-19 pandemic has also presented a financial challenge for renters across the UK, as one in five have been placed on furlough or lost employment since the outbreak.

More than one in 10 have missed or been late on rent payments in the past year, and one in seven have had to dip into savings to get by day-to-day.