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.
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.
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