Renters are 'giving up' on ever owning a home

Less than half of 20-45 year-old tenants are saving to buy a property.

by Rachel Savage
Last Updated: 27 Apr 2015

First-time buyers may be at their highest level since the financial crash, but increasing numbers of renters are giving up ever getting a foot on the property ladder.

That’s according to a report by mortgage mega-provider Halifax, which found 43% of 20-45-year-old tenants are currently saving for a deposit, down 6% from last year.

The sheer cost seems to be the biggest barrier to the just over 8,000 people questioned for the survey: 57% cited the size of the deposit, 56% pointed to high property prices and 53% their low income.

London, unsurprisingly, comes out on top for people who think they’ll never own a place of their own – 82% ‘worry they will never be able to buy a house’, although the lowest level in the country isn’t that far behind at 71% in the north west.

The percentage of people not saving to buy a home had been steady for three years before this one, so it could be a blip. Or it could be evidence that increasing numbers of 20 and 30-somethings believe they’re never going to own a home. ‘The presumption that the UK is obsessed with homeownership may need revaluating and a lower level of homeownership may become the new normal,’ the Generation Rent report said.

Halifax does of course thrive from home buying, though, which was evident in this politico-worthy plea. ‘Homeownership is never going to be the right choice for everyone but we all have a right to the opportunity to own a property,’ its mortgages director Craig McKinlay said. MT wonders if any politicians will be lobbying to have that included in the European Convention on Human Rights/our own 'British Bill of Rights' any time soon.

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