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An overwhelming number of renters are unable to buy a property, with very few saying they are tenants out of choice.
And a fifth of tenants have been renting for more than 20 years, according to analysis by property investment management firm Monta Capital.
Cannot afford
Around 85% of renters have no option, and cannot afford to buy their own home, the research shows.
Monta Capital commissioned a survey of 1,586 UK renters to find out whether renting is a lifestyle choice or necessity.
The survey reveals that 24% of tenants have been renting for 6-10 years, 22% for 10-15 years, 13% for up to 20 years, and 20% for more than 20 years.
Most common
When renters are asked if they have any plans to buy, 43% say no. And by far the most common reason is that they can’t see themselves ever being able to afford it (70%).
Of the 57% who say they do have ownership aspirations, 19% say it will be up to 10 years before they think about doing so, and less than 60% (59%) believe they’ll actually be able to achieve home ownership by then.
Thomas Balashev, CEO, Monta Capital
Thomas Balashev, CEO of Monta Capital, says: “If the vast majority of people are renting through necessity, I believe that there is a significant burden and moral obligation to provide them with quality, nourishing homes.”
Renters mortgage
A new mortgage aimed at ‘trapped’ renters who cannot afford a deposit, is now offered by Skipton Building Society.
Skipton, which owns estate agency giant Connells and Countrywide, unveiled the deposit-free mortgage last year.
The mortgage is approved based on a tenant’s track record of paying rent.
Having looked through literally 100s of tenant applications over the years my advice to too many tenants would be to ditch subs to 4 TV channels you never watch costing £85 a month combined, forget the £45 month latest phone, you don’t need 2 take away coffees at £8 a day and you don’t need a newer car costing £400 a month.