Most Private Tenants Unlikely To Take Out A Homeowner Loan In Next Five Years
Although many individuals in the UK see renting their home as a stepping stone to being able to afford a home owner loan or mortgage and owning their own property, a new survey has found that somewhere in the region of two thirds of private tenants are unlikely to buy their own home before 2015.
The survey, which was conducted by Kensington mortgages, found that around 66 per cent of current tenants do not intend to buy a house in the next five years, either due to not being able to afford the repayments on a home owner loan or mortgage, or due to the fact that they are unable to raise a sufficient deposit to meet lenders low loan to value criteria.
Out of those individuals who took part in the survey, 90 per cent said that they were concerned about how difficult it is becoming for first time buyers to enter the housing and home owner loan market.
There are almost 8 million people currently living in private rented accommodation, which equates to around 13 per cent of the population and many believe that this will grow over the course of the next five years due to the inability of people to be able to obtain a suitable home owner loan.
This, of course, is likely to place more strain on the private rented sector to be able to meet the growing demand and Kensington have called on both the Government and lenders to support landlords with legislation and better buy to let loan products, in order to allow then to develop their portfolios.
Keith Street of Kensington said “With a growing population and difficult outlook for first time buyers the strain on the private rented sector will only increase. It is therefore vital that there is the housing stock available to meet this demand and we need to encourage landlords to build and maintain portfolios for the long term so that tenants continue to have a choice of good quality, affordable rental accommodation to meet their housing requirements.”
