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Rental demand to stay strong as many tenants say they’ll never buy

Over a third of current renters believe they will never be able to buy a home in future. 

And only 29 per cent expect to become homeowners within the next five years.

Research by TSB points to the range of challenges faced by renters looking to take their first steps onto the property ladder.

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While property prices were cited as an obstacle to buying a home by 45 per cent of renters, the challenge of not being able to save for a deposit and not earning enough to qualify for an appropriate mortgage were also cited as an obstacle by a third of those who did not own a property. 

This comes at a time when rental prices are increasing at a significant rate – ONS data shows a 6.1 per cent rise for private tenants in the 12 months to October 2023. 

Renting was also linked to economic uncertainty with 76 per cent of private renters saying that they had experienced moments of anxiety or worry related to their finances in the previous six months. This is compared to 46 per cent of people who owned their home outright.

The TSB research was carried out by IPSOS among a nationally representative quota sample of 2,187 adults aged 18 to 75 in the UK, between September 29 and October 3.

Of the overall sample, 820 were adults who rent, or live in rent or rent free accommodation.

Deby Herring, Head of Mortgages at TSB, says: “Whilst the levelling out of prices might be good for first-time buyers, it isn’t just the cost of housing holding them back. There is a range of other factors making it hard for them to take their first step.

The research coincides with TSB launching  a mortgage product range specifically for first-time buyers. The mortgages will enable first-time buyers to move automatically onto a follow-on tracker rate that is lower than the current TSB Homeowner Variable Rate after the fixed period ends.

Want to comment on this story? If so...if any post is considered to victimise, harass, degrade or intimidate an individual or group of individuals on any basis, then the post may be deleted and the individual immediately banned from posting in future.

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    The future is grim for young people 🆘🆘, my whole focus is on my family and it’s welfare, that is why I am selling up, my children WILL own, god help those without parents that can help like a lot of us can.

  • Nic  Kaz

    Where will they rent? Government wants -and is getting - less PRS, the BTR market hasn’t taken off and councils don’t want the cost and commitment of building social housing. Wanting to rent and being able to rent are sadly going to be two different things.

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    Several of my tenants have bought over the last few years but virtually none of them. bought traditional FTB properties. HTB allowed them to go straight into a 3 or 4 bedroom house. When their 5 year fix ends and they have to start repaying the government loan as well some of them will be in serious trouble.

    My current tenants seem to be very aware of second stepper costs and how important it is to buy the right property first time when there is only one set of fees. The massive hike in interest rates has scared some of them and made them reconsider purchasing. One of them suddenly realised owning a property may make it very difficult to accept a job offer due to the added complication of having to sell a property.

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    It is a disgrace how this Government are currently governing and from the sound of it Labour will be no better. The entitlement by these two parties to be the only option is over.
    Personally I can't wait for an election and will most definitely vote Reform and will hope for a hung parliament.

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    Could you imagine a hung parliament with Labour having to go cap in hand to Richard Tice to Get a bill passed - 🤣🤣🤣

     
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    Catherine, that would be marvellous, but ideally people are keeping their powder dry and the main parties are in for a shock.

     
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    Catherine, it would be like a dream come true, lol

     
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    Same here, Reform. 👍🏻

     
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    I've just looked at the Reform blurb and couldn't spot anything about housing policy. Does anyone know if they have one?

     
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    I have asked on numerous occasions - I wrote direct to hq and via Norma saggers who appears to be a region co ordinator
    Hq = no response - finally Ms Saggers told me they had a lot of policies to get thru so had not put it together yet but obviously I was so well informed they would ask me to contribute (aka soft soap). But local candidate kabeer kher confirmed he is anti RRB and does post up pro landlord tweets - I understand they do not use party whip system….. so probably will be unwilling to commit at party level in case it damages them?

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