Almost two thirds of rental tenants cannot afford a deposit to allow them to purchase their own home.
64% of tenants polled by yieldit said they could not afford a deposit to buy a property and only a third (34%) were currently saving for one. The figures represent an increase from 56 per cent of tenants saying they couldn’t afford a deposit in late 2018, demonstrating that ‘Generation Rent’ could be here to stay.
yieldit ‘which facilitates the sale of tenanted buy-to-let property’ surveyed 500 renters on their current situation in an effort to understand the market pressures tenants face.
The data also showed that a fifth (26 per cent) believed they did not meet the criteria for securing a mortgage.
Ryan Hughes, head of sales at yieldit, said: ‘Landlords are fortunate that we have a lively rental sector in the UK with many tenants remaining in properties for years at a time, which helps maintain a steady income for the landlord and keeps the sector buoyant.
‘That said, it’s concerning to see the number of tenants saying they can’t afford to buy increase yet again. Renting is ideal for lots of people, for example those who are ready for their first taste of independence but don’t want the long-term commitment of a mortgage, but it shouldn’t be a barrier to purchasing a home.
‘Yet with only a third of respondents saying they were currently saving for a deposit, it looks like the rental market won’t be changing any time soon.’
yieldit specialises in the sale of income generating buy-to-let property between investors and works with buyers and sellers to identify the true financial potential of a rental opportunity.
The survey was carried out by OnePoll. For more information, visit www.yieldit.com
