Deposit Affordability the Cause of Rising Age of Renters

 

deposit affordability

Deposit Affordability the Cause of Rising Age of Renters

We have come across yet another report stating an increase in people struggling to obtain a mortgage and move from renting to homeownership.

Intus Lettings has looked at data from the past few years, and has concluded that the number of renters aged 35-54 has risen by 15%.

The agency has suggested that this struggle to get onto the housing market ladder appears to be getting worse, despite house prices seeing the largest November fall, since 2012.

The research stated that those who rent have found the main factors getting in the way of their progress onto the property ladder include not being able to afford a deposit and not meeting mortgage criteria.

The number of those not being able to afford the deposit for a house amongst those aged 45-54 has also risen by a third, since 2016, according to recent data. Less than a fifth of renters over the age of 55 believe that purchasing a property may actually become a reality for them, one day. Problems with getting a mortgage due to age have been highlighted by the survey.

To support the information gathered by Intus Lettings, the Department for Work and Pensions has also revealed in its 2018 study that the number of renters aged 35-54 has nearly doubled in the last ten years.

There has been more optimism amongst younger renters, in regards to owning a property in the future. Only 43% of tenants aged 18-24 have said that they could not afford a deposit.

However, when questioned further, it was found that most of the age group questioned are putting less than £50 per month into their savings towards one. Could it be that homeownership is just not that big a priority for younger tenants?

Hope McKendrick, Lettings Manager at Intus Lettings, has commented: “With the cost of rent rising faster than wages, it’s no surprise that an increasing number of people find themselves unable to save up for a deposit to buy a home well into their 40s, 50s and beyond.

“The survey results revealing that a large proportion of older renters don’t believe they’ll ever be able to buy a home is a particularly worrying trend, as only around one-in-five middle-aged tenants feel renting actually suits their lifestyle.”

Regardless of age, the survey found that affordability was named by far the most important factor, when it comes to renting a property. Nearly half of those over 45 find that the costs of renting are their biggest concern. With the Tenant Fees Bill due to bring about changes this year, we are interested to see if such money worries ease at all.

More than half of all the age groups surveyed have been worried about not being able to make rent payments, due to financial difficulties on at least one occasion.

Hope McKendrick also stated: “Stability can be one of the biggest concerns for those renting a home, from keeping up with rising rents to not knowing if you’ll be in the same home this time next year. Especially as nearly half of renters aged between 35 and 54 live with their children, the pressures can mean added stress for parents and families.”

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