The majority of those who rent their property will not stop trying to get onto the housing ladder, a new report from Rightmove suggests.
The property website’s rental market report reveals that 96% of renters ‘dream’ of owning their own home, while 70% are determined to keep trying – however long it takes – until they achieve their goal.
The poll of 3,000 renters conducted in July found that only 11% are not interested in buying, but 60% now find themselves trapped in a position where they cannot afford to buy – up from 56% a year ago.
For people in this position, it's a "nightmare scenario", says Rightmove director, Miles Shipside.
"In spite of buying looking increasingly attractive, as the costs of renting continue to rise, saving a deposit continues to get harder," he said.
Only 15% of those polled said they were happy with their level of saving each month towards a deposit, while double this number said that they would need a windfall to have any chance of gaining a foot on the housing ladder.
The Help to Buy Scheme could come to the aid of many, playing the role of "dream-maker", Mr Shipside suggests.
The scheme will extend its parameters in January from new build homes to all existing homes worth less than £600,000, offering hope to first-time buyers and those with minimum deposits.
"It will not be a pre-credit-crunch free for all," Shipside observed, "but for some that have been unable to reach the higher deposit criteria, it could be a real leg up onto the property ladder."
Mortgage market statistics show that the Funding for Lending Scheme, launched one year ago, still heavily favours low-risk buyers with large deposits or existing equity, though commentators are optimistic that the bias is shifting towards higher loan-to-value mortgages (read more).
Nevertheless, the difficulty in saving towards a mortgage, together with the poor returns offered to savers as a consequence of the mortgage-supporting scheme, is likely to keep the dreams of many aspiring homeowners at bay for the foreseeable future.
Keith McDonald
Which4U Editor
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